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Research Engineers to Acquire R-Cube

Research Engineers Inc., a Yorba Linda engineering software company, said it has agreed to acquire R-Cube Technologies Inc., a Silicon Valley software consulting firm, for $2.4 million cash.

Privately owned R-Cube specializes in software development for Internet and Intranet applications.

Separately, Research Engineers said it has dropped plans to acquire privately held COADE, a Houston software developer, but has agreed to work closely with the company in a formal alliance to develop and market “plant engineering” software used to assist in the design of manufacturing buildings.

The acquisition of Cupertino-based R-Cube will give Research Engineers a toehold in the rapidly developing information technologies arena, said Amrit K. Das, Research’s president and chief executive. The deal is expected to be completed by the end of February.

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Following the acquisition, R-Cube will be integrated with Techna Consulting Services, a recently acquired Research Engineers’ software development unit in India. Das said the two companies will form the core of a new information technologies business unit aimed at serving the engineering industry.

The combined companies’ annual revenue should increase by about 35% to $17 million for the fiscal year ending in March 2000, said Wayne Blair, chief financial officer of Research Engineers.

Research Engineers’ common stock rose 13 cents Tuesday to close at $3.50 a share in light Nasdaq market trading.


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