StarPress Buys Graphix Zone for Stock

Multimedia companies Graphix Zone Inc. and StarPress Inc. said Thursday that they have signed a definite agreement to merge through an exchange of stock.

Under terms of the deal, StarPress shareholders will receive about 0.15 shares of Graphix Zone company stock for each share of StarPress stock. StarPress, a San Francisco-based developer of reference CD-ROMs, will own 54% of the combined company, but will take Graphix Zone’s name and operate at Graphix Zone’s headquarters in Irvine.

StarPress Chairman Ron Posner will become chairman of the combined company, and Chuck Cortright will continue as Graphix Zone’s president and chief executive.

Officials for the companies said that they expect to complete the merger in March after obtaining regulatory approval.