Software Firm Is Buying NetGuru

Research Engineers Inc., a Yorba Linda developer of engineering software, said Thursday it has acquired a 70% stake in NetGuru Systems and plans to acquire the other 30% of the Waltham, Mass., information technology company by the end of the year.

Research Engineers said it paid $4.5 million in cash, common shares and a promissory note for the company. It will fund the cash portion of the purchase by issuing newly created series B, 5% convertible preferred shares.

It will combine NetGuru operations with its R-Cube Technologies unit, acquired in the fourth quarter of fiscal 1999.

Research Engineers reported fiscal 1999 losses of $520,000, or 9 cents a share, on revenue of $10.7 million. The company said that, assuming it acquires NetGuru on March 31, revenues would total $20 million for the year. Research Engineers shares fell 25 cents, to $8.50, in Nasdaq trading.