Group Acquires Emerson Technologies’ Major Assets

NEWPORT BEACH —  A management group has purchased the major assets of Emerson Technologies L.P., a developer of so-called multimedia computers, for an undisclosed price, the company said Monday.

Chris Daly, president of Emerson Technologies in Newport Beach, said that his new company, Veritel Systems Inc., has acquired the Emerson Technologies assets for less than $10 million.

Veritel is owned by Daly; John Soska, an Emerson Technologies executive; and investors Mike Metzger and Geoffrey Fram, both of Owings Mills, Md.

Daly said Veritel will be headquartered in Owings Mill, Md., but will keep its offices in Newport Beach and will employ most of Emerson Technologies’ 30 workers. Some Emerson Technologies employees will transfer to parent company Emerson Radio Corp., a North Bergen, N.J.-based audio electronics giant.

As part of the transaction, Daly and his partners will turn over their 49% share in Emerson Technologies to Emerson Radio, which owns the other 51% of Emerson Technologies and the rights to the Emerson name.

“Emerson (Radio) will essentially keep the Emerson Technologies name and inventory,” Daly said, while Veritel will get the computer technology, employees and facilities.

Daly said Veritel will develop multimedia computers that incorporate television, VCR and compact-disc features in a personal computer. Besides manufacturing the computers under the Emerson name, it will also license its designs to other computer makers.

He said the transaction will delay the launch of the line of multimedia computers from this month until about June.

He said he decided to acquire the Newport Beach company because Emerson Radio, which recently said it would sell 20% of its stock to Semi-Tech Global for $30 million, no longer wanted to make computers in the United States. Daly said Veritel computers will be made in the United States.