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National Education to Buy Boston Firm

August 30, 1988|ROD McCULLOM | Times Staff Writer

National Education Corp., a vocational education and training firm headquartered in Irvine, said Monday it has agreed to acquire Spectrum Interactive, a Boston-based developer of corporate educational programs.

The agreement calls for National Education, which operates more than 50 vocational schools across the country, to acquire Spectrum Interactive in a stock-swap merger transaction. Neither firm would release details of the agreement.

National Education President Jerome Cwiertnia said he does not anticipate any relocation of operations or major labor changes after the acquisition.

Spectrum Interactive was founded in 1981 and helps companies improve management and labor performance and efficiency. Its clients include Sears, Ford, General Motors and Xerox.

National Education said Spectrum Interactive expects revenue of about $25 million for this year. The private firm has about 200 employees.

National Education, which reported earnings of $3.6 million on revenue of $378 million last year, said it expects its revenue to grow to $450 million in 1988. The company has about 5,000 employees.

Cwiertnia said talks between the two firms were initiated by National Education and took place over a period of several months.

He said the merger would not have a negative effect on National Education's profitability.

Last December, National Education acquired Advanced Systems Inc., a Chicago-based educational training concern. That merger exacted a heavy toll on National Education's earnings, which fell to $3.6 million from $15 million in 1986.

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