Lantronix Buys Software Company

Lantronix Inc., an Irvine designer and developer of network device servers, said Monday it has agreed to acquire privately held United States Software Co. of Hillsboro, Ore., for $7 million in cash and stock.

Lantronix said it may issue up to an additional $9.75 million in common shares to U.S. Software if the company meets certain revenue and earnings levels.

U.S. Software provides software for embedded technology applications. The company has 25 employees, and Lantronix said it expects all will be retained.

Lantronix said the deal will probably close before Dec. 31. The acquisition should add about 1 cent a share to the company’s results for fiscal 2001 and accelerate revenue growth in 2002. In 1999, Lantronix earned $1.1 million, or 4 cents a share, on revenue of $45 million.

The stock closed unchanged Monday at $7.50 in Nasdaq trading.