Garden Grove-based DPAC Technologies Corp. said Tuesday it plans to combine with Hudson, Ohio-based QuaTech Inc. in an all-stock deal.
The combined company will be led by Chairman Kim Early, current DPAC chief executive, and Chief Executive Steven Runkel, QuaTech’s chief executive.
The company will retain the DPAC name and have a seven-member board with three company directors and four independent members.
The stock deal still needs to be approved by the companies’ shareholders. DPAC and QuaTech also need to get financing in the next six to eight weeks to fund the deal.
Under terms of the deal, DPAC will exchange newly issued shares of common stock for QuaTech shares.
QuaTech is a privately held company that makes network devices for banks, retailers, energy providers and security companies, among others. The company said it had sales of about $10 million last year and posted an after-tax profit.
DPAC, meanwhile, sold off most of its operations in 2004. The onetime chip stacking maker sold its memory businesses to Staktek Group LP and Twilight Technologies Corp. for a total of about $1 million in separate deals last year.
Those businesses represented nearly all of DPAC’s sales of $12.6 million for the 12 months through November.
The company, which has lost money for the past nine quarters, now is developing and selling wireless products. It had sales of $334,000 for the quarter ended Nov. 30.
DPAC makes wireless networking devices under the Airborne name that link machines and allow companies to collect data from remote locations. It is targeting large companies in transportation, instrumentation and industrial control, homeland security, medical diagnostics and logistics industries.
The company was trading at 61 cents a share after the QuaTech announcement, giving it a market value of $15 million.
