YARC Systems Agrees to Acquire Quick Pix Inc.

YARC Systems of Camarillo has reached an agreement to acquire Quik Pix Inc. in exchange for 1.2 million shares of YARC common stock, together with the assumption of debt and certain other financial obligations.

Quik Pix’s revenues in fiscal 1998 were in excess of $2 million. The company, which does business as Quality Photographic Imaging, was established in 1982 as a support firm for the West Coast advertising industry. Its services include the production of color visual displays, both digital and photographic.

The customer list for the Orange County company includes Disney, Taco Bell, Mattel, Hyundai, TRW, Playboy, Lucky supermarkets and the MGM Grand Hotel in Las Vegas.

YARC officials said they have found it difficult to establish a presence in the U.S. sign-making market, which is still dominated by conventional photographic techniques. The acquisition will allow YARC to take advantage of Quick Pix’s market presence.

“YARC’s strategic plan has always been to grow by merger and acquisition,” said Trevor Marshall, chairman and chief executive.

The transaction is expected to be accounted for as a pooling of interests and will be completed during YARC’s second or third fiscal quarter.

YARC manufactures the Raster Image Processor, a device that converts Postscript graphics and text into high-resolution images that can be printed on film, paper, fabric and other media. Its color server can be connected directly to the Internet.