COSTA MESA — Parker Automotive Corp., after warning a rival Houston firm that it was infringing Parker patents, said it will buy the competitor instead of going to court.
While declining to disclose the exact purchase price, a Parker official said Monday that the firm will pay less than $2 million to acquire Intertech Inc. Costa Mesa-based Parker and Intertech both manufacture products used to flush pollutants from automobile fuel systems.
Last week, Parker threatened legal action against Intertech, claiming that its CarbonZapp products infringed on patents for Parker's CarbonClean product. Both products are widely sold in the United States and abroad.
"We are happy to have resolved these issues amicably and are delighted to acquire the customers and cooperation of Intertech," said Michael E. Parker, president and chief executive of Parker. He said his company's purchase of Intertech "avoids a distracting and expensive litigation."
Intertech President Joe Peitz said his firm agreed to the acquisition because "Parker made me a good offer, so I took it." He declined further comment.
Parker Automotive plans to phase out Intertech's products within the next year, Parker said. Some Intertech employees will be offered jobs with the Costa Mesa firm, he said, but he declined to say how many.