Irvine-Based State of the Art and Manzanita Software Merge : Stock swap: The deal will provide a boost for the developer of accounting programs, an analyst says.

State of the Art Inc. said Tuesday that it has completed a merger with Manzanita Software Systems in a stock swap valued at $13.7 million.

The move was hailed by analysts who said the merger with Manzanita, based in Roseville, will fill out State of the Art’s accounting software product line and make a positive contribution to the company’s bottom line.

“It is a good deal for them,” said Steve DeLuca, an analyst at investment bank Cruttenden & Co. in Irvine. Manzanita specializes in entry-level accounting software, while State of the Art, based in Irvine, develops mid- to high-range accounting programs.

State of the Art also hopes to reap significant financial gains from joining forces with Manzanita. “Given their 40% growth rate last year, we expect the top and bottom to increase as a result of the merger,” said Joe Armstrong, State of the Art’s chief financial officer.

The company also said that former Manzanita President Corley Phillips has joined State of the Art as vice president of marketing and product support. He will also manage production and management information systems.

State of the Art struggled in 1994 because of sluggish sales of existing programs and delays in getting new products to market. For example, its new Windows-based software, scheduled to be released several months ago, will not debut until August or September.

In Tuesday’s Nasdaq trading, State of the Art’s stock gained $1.25 a share to close at $8.13.