Cerplex to Merge with Aurora Electronics

Troubled Tustin computer service firm Cerplex Group Inc. said it has agreed to merge with a San Diego rival, Aurora Electronics Inc. The deal, a stock swap that is expected to close in April, will turn Cerplex into a wholly owned subsidiary of Aurora and will help it ease some of its ongoing financial problems, Cerplex officials said. Cerplex specializes in handling electronic repairs, while Aurora focuses on recycling technology and selling spare parts to the computer industry. “The merger takes two companies that were having financial difficulties and lets them join forces,” said John Thompson, president and chief executive of Aurora Electronics. The deal is subject to regulatory approval. Once completed, the newly merged companies will operate under the Cerplex name, officials said. Cerplex, which analysts criticized for expanding too quickly in the early 1990s, has been restructuring its U.S. operations for several years. It sold some units and closed others as it attempted to bring costs into line with revenue.