Computer Automation, suffering from continuing losses and struggling to find a financial backer, has tentatively agreed to merge with Everett/Charles Test Equipment of Pomona, according to Jerry Hudspeth, chairman and president of Everett/Charles.
The pending move could end months of financial uncertainty for Computer Automation, a once high-flying electronics company that faltered from a series of missteps and amassed losses totaling more than $20 million in three years. Problems were so severe that President Douglas Cutsforth acknowledged in December that the company could be forced into bankruptcy.
The tentative merger plan, Hudspeth said, calls for the two companies--which make test equipment for computer parts--to combine their operations, possibly in Pomona, where Everett/Charles employs about 200 workers. The fate of the 300 employees at Computer Automation's Irvine headquarters has not been settled.
Hudspeth said the deal, which has not been put in writing, could be completed in 90 days. Computer Automation officials could not be reached for comment.