Lockheed Seals Deal With Summagraphics

Lockheed Martin Corp. and Summagraphics Corp. said they have signed a definitive agreement cementing a previously announced plan to combine a Lockheed subsidiary based in Anaheim with Texas-based Summagraphics.

Under the agreement, Summagraphics will merge with Lockheed’s CalComp unit, creating a combined company with annual sales of about $350 million. Summagraphics and CalComp both make plotters, printers and other computer equipment used in graphic design.

Summagraphics will issue about 40.7 million new shares of common stock to Lockheed Martin in a tax-free exchange that will give Lockheed Martin about 90% of the stock in the newly created company. The remaining 4.7 million shares, or 10%, will continue to be held by existing Summagraphics public shareholders.

The new company is expected to be based in Anaheim, and will be listed on the Nasdaq exchange. The transaction is scheduled to close in the second quarter of 1996, officials said.

CalComp has about 1,000 employees worldwide, including 535 at its plant in Anaheim. Summagraphics has about 275 employees worldwide.