Research Engineers Inc., a Yorba Linda engineering software company, said it has agreed to acquire R-Cube Technologies Inc., a Silicon Valley software consulting firm, for $2.4 million cash.
Privately owned R-Cube specializes in software development for Internet and Intranet applications.
Separately, Research Engineers said it has dropped plans to acquire privately held COADE, a Houston software developer, but has agreed to work closely with the company in a formal alliance to develop and market "plant engineering" software used to assist in the design of manufacturing buildings.
The acquisition of Cupertino-based R-Cube will give Research Engineers a toehold in the rapidly developing information technologies arena, said Amrit K. Das, Research's president and chief executive. The deal is expected to be completed by the end of February.
Following the acquisition, R-Cube will be integrated with Techna Consulting Services, a recently acquired Research Engineers' software development unit in India. Das said the two companies will form the core of a new information technologies business unit aimed at serving the engineering industry.
The combined companies' annual revenue should increase by about 35% to $17 million for the fiscal year ending in March 2000, said Wayne Blair, chief financial officer of Research Engineers.
Research Engineers' common stock rose 13 cents Tuesday to close at $3.50 a share in light Nasdaq market trading.