PerfectData Corp. in Simi Valley has signed a letter of intent to merge with Dynatech Integrated Systems Corp. of Columbia, Md.
Dynatech develops integrated client/server systems and services to manage a company's total information needs. The reason for the merger is to allow PerfectData to benefit from Dynatech's relationship with large corporate clients and governmental agencies, officials said.
Dynatech is a certified system integrator for Microsoft, Oracle, IBM, People Soft and Novell, among others. PerfectData designs computer, office care and maintenance products and accessories.
The agreement calls for Dynatech to acquire approximately 10% of the outstanding shares of PerfectData at $5 cash per share and for PerfectData to issue approximately 51% of the combined companies' outstanding shares to former Dynatech shareholders.
Dynatech's revenues for 1996 were approximately $8 million, and revenues for 1997 are expected to exceed $10 million.
After the merger, and once 10% of the outstanding PerfectData shares have been acquired by Dynatech, the existing shareholders of PerfectData will own 49% of the outstanding shares of the combined companies.
Fortress Financial Group Ltd., an investment banker in Charleston, S.C., is facilitating the merger.
The merger is expected to be completed in about two months. PerfectData will be the surviving entity, with several operating divisions.