Smith Micro Expands

Smith Micro Software Inc. has agreed to acquire Performance Computing Inc. in a stock and cash transaction valued at as much as $5.13 million.

Under the terms of the agreement, Smith Micro said it will issue 350,000 shares of its common stock, or $2.23 million based on a Smith Micro price of $6.375 per share, and pay $2.1 million in cash upon the completion of the transaction, which is expected in late February. An additional $800,000 in Smith Micro shares will be issued one year after the closing date if PCI meets 1996 product milestones.

Closely held Performance Computing, based in Beaverton, Ore., makes software for audio and video applications. Smith Micro makes data, fax and communication software for personal computers.