Merger will lead to hirings

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<B>By LAUREY LUMMUS</B> <FONT SIZE=-1><I>Staff Reporter</I></FONT>

Pacer Systems Inc., based in Billerica, Md., and Infotec Development Inc.,based in Santa Ana, Calif., which also has a marketing office in ColoradoSprings, have announced a merger. The companies will now be known asPacer-Infotec Inc. and will join forces upon approval of their respectiveshareholders meetings, which were held at Pacer headquarters.

Pacer is a publicly-held information technology services firm that is involvedin government electronic systems integration and engineering contracts. TheColorado Springs office, while anticipating local contacts to be announcedin the near future, is currently supervising a Boulder project initiatedby International Business Machines.

Pacer, which boasted 1995 revenue of $27.6 million, names the U.S. Navy asits largest customer. The company is currently traded on the London StockExchange.

Infotec, while privately held, recently reported 1995 earnings in excessof $35 million.

The proposed merger will see Infotec shareholders holding 44% on a fullydiluted basis of the new Pacer Infotec stock. The new company will employ540 people. Due to the merger, the Colorado Springs office, which currentlyhouses a small number of employees, is expected to expand.

The companies each have reported contract backlogs, which together measure$142 million.