Orange County Business : Madic-Compufact to Merge With DataWorks : Technology: The new firm will install computer systems in factories. No layoffs are expected.
Madic-Compufact Corp., a computer integration firm, said Thursday that it will merge with San Diego-based DataWorks Corp.
The combined company, which will install computer systems in factories, will have $25 million in annual sales, 150 employees and good prospects for additional hiring. No layoffs are expected. Terms of the merger were not disclosed.
Madic-Compufact, which has 65 employees in Garden Grove, and DataWorks both develop computer systems based on the Unix operating system, a basic computing system that is used by companies with large groups of computer users.
They sell their systems to manufacturers and install all the necessary computer equipment. The systems control such functions as automatic purchasing and accounting, said Gene Cranford, DataWorks’ vice president of marketing.
The new company will be based in San Diego and will be called DataWorks. Stuart Clifton, president and chief executive officer of DataWorks, will become chief executive officer and president of the combined company. He said the deal will give DataWorks critical mass to compete against others.
Al Alteslane, president and chief executive officer of Madic-Compufact, will become chief operating officer and executive vice president of DataWorks. He said he expects to hire half a dozen technicians and programmers in the next year.
Irvine-based Cruttenden & Co., an investment bank, helped arrange the merger, which is being financed by a group of private investment firms, including the Pacific Mezzanine Fund in San Francisco and Parker, Mulcahy & Associates in Los Angeles.
DataWorks Merger at a Glance
* Companies: Madic-Compufact of Garden Grove and San Diego-based DataWorks will merge under the name DataWorks.
* Headquarters: San Diego
* Business: Unix-based information management systems
* Employees: 150 combined, with plans for future expansion and hiring
* President/CEO: Stuart Clifton
* Projected 1994 revenue: $25 million
Source: DataWorks; Researched by JANICE L. JONES / Los Angeles Times
Los Angeles Times
