Aurora Electronics to Acquire Computer Repair Firm in Stock Swap

Aurora Electronics Inc., a recycler of integrated circuits for the electronics industry, said Monday that it has agreed to acquire a Sacramento computer repair company in a stock swap valued at $5.4 million.

Aurora will give about 9% of its stock to acquire FRS Inc. in a deal expected to close at the end of the month, said James C. Cowart, Aurora’s chairman.

The Irvine company, which reconditions and resells circuit boards, hopes that FRS will give it the capacity to recycle entire computers, Cowart said. FRS will remain a separate unit under its current management.

Analysts predict that Aurora will generate $53 million to $59 million in revenue for its current fiscal year, which ends Sept. 30. It earned $2.5 million on revenue of $39.4 million for its first nine months. Privately held FRS had about $20 million in revenue for each of the last two years.

In Monday’s trading on the American Stock Exchange, Aurora closed at $7.875 a share, up 37.5 cents.