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ORANGE COUNTY BRIEFLY

General Automation to Buy Unit of Sequoia Systems

October 04, 1996

IRVINE — General Automation Inc. has agreed to acquire a business unit of Houston-based Sequoia Systems Inc. for $11 million in cash, stock and deferred payments, the companies said Thursday.

Irvine-based General Automation, which sells and maintains computer systems for corporate customers, will also assume $3 million of Sequoia debt.

General Automation agreed to purchase Sequoia Enterprise Systems, a business unit of Sequoia Systems that manufactures so-called enterprise servers, the high-performance computers often used by large companies to store data and power computer networks.

General Automation said it expects the acquisition to boost its revenue by about $21 million, or 85%, over the next year. Sequoia said the sale frees the company to concentrate on servers for industrial and communications applications.

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