Garden Grove-based DPAC Technologies Corp. said Tuesday it’s inked a formal deal to buy Hudson, Ohio-based QuaTech Inc.
The companies first said they planned to combine in early March.
The deal still needs to be approved by DPAC’s shareholders. Some $4 million to $5 million in financing to fund the deal must be raised. DPAC and QuaTech plan to get approval and raise the funds in the next three months.
Current DPAC Chief Executive Kim Early will be chairman of the new DPAC. QuaTech’s Chief Executive Steven Runkel will be chief executive of the new company.
The company will retain the DPAC name and have a seven-member board with three company directors and four independent members.
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 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’s shares, which were trading at 61 cents a share after the QuaTech announcement in March, were at 40 cents on Tuesday.
