Delphi Buys Redshaw for Cash and Securities

Delphi Information Systems Inc., a Westlake Village marketer of computer systems to the insurance industry, said Monday it bought Redshaw Inc. for more than $7 million in cash and securities.

Pittsburgh-based Redshaw provides computer software and automation systems for independent property-casualty insurance agencies and brokerages. Delphi’s systems are also targeted at that market.

Redshaw was largely owned by a unit of ITT Corp.’s Hartford Fire Insurance Group, along with minority shareholders Crum & Forster Insurance Co., Kemper National Insurance Co. and St. Paul Fire & Marine Insurance Co.

Delphi bought Redshaw for $2 million in cash, 282,646 shares of Delphi’s common stock (which closed Monday at $7 a share in national over-the-counter trading), 31,950 shares of Delphi’s Series B preferred stock and a $3-million face amount of subordinated notes--a form of debt--that can be converted into additional Delphi stock.

In its fiscal year ended March 31, Delphi’s revenue totaled $26.6 million. Redshaw’s revenue in its fiscal year ended last March 31 was $18 million.

Redshaw is Delphi’s second acquisition this year. Last January, the company bought McCracken Computer Inc., a former competitor, for $10.2 million in cash and stock. With the Redshaw deal, Delphi said its annual revenue will total more than $60 million, and the company will employ about 380 people.