Franklin Telecommunications Corp., a Westlake Village maker of products used in wide area computer networks, has agreed to acquire LAN Performance Labs, a San Diego manufacturer of local area network equipment.
The acquisition will double Franklin's sales and give the Westlake Village firm new marketing opportunities in Europe, according to Frank Peters, Franklin's president and chief executive.
He said LAN has patents and proprietary software that are expected to enable Franklin to greatly reduce its production costs. Franklin's products include components used in automatic teller machines.
Peters said Franklin's revenues total more than $1 million annually and should exceed $2 million as a result of the acquisition.
The deal calls for Franklin to acquire all of LAN's stock in exchange for 600,000 of Franklin's common shares.
Peters estimated the value of the deal at between $300,000 and $400,000. He said he did not know when the merger will be completed because details are still being worked out.