CalComp to Be Publicly Traded After Merger

CalComp, a manufacturer of computer products that has been a subsidiary of Lockheed Martin Corp. for the past 10 years, will once again become a publicly traded corporation as part of a planned merger with a similar company in Texas.

Under the terms of a preliminary agreement, Anaheim-based CalComp will be combined with Summagraphics Corp., an Austin-based company that, like its merger partner, makes plotters, printers and other computer equipment used in graphic design.

The merger, orchestrated by Lockheed Martin, would boost CalComp’s annual sales by about $50 million, to $350 million, officials said. As part of a stock swap, Lockheed would own 90% of the shares in the combined company, and the remaining 10% would be held by investors in Summagraphics.

The company’s stock will be traded on the Nasdaq market. Officials said CalComp will become a publicly traded company partly to eliminate the potential tax liability of the merger.

Analysts said the deal adds both size and strength to CalComp, a unit that Lockheed Martin has tried to sell in recent years.

“They have similar product lines and can probably cut down on distribution costs,” said Howard Rubel, an analyst at Goldman Sachs in New York. “Summagraphics has lost some money recently, but the combination will be stronger than the two companies separately.”

Gary Long, president of CalComp, said many details still need to be worked out, but indicated that the 37-year-old company will probably remain in Anaheim. After all, he said, “we’re going to be 90% of the surviving entity.”

Asked whether there would be employee layoffs after the merger is completed, Long said it was “too early to speculate.”

CalComp employs 1,050 workers worldwide, including 535 at its plant in Anaheim. Summagraphics has about 250 employees. Its stock is traded on the Nasdaq market.