Styles on Video to Buy Dycam in Stock Swap

Styles on Video Inc. in Canoga Park said it has agreed to buy Dycam Inc., a Chatsworth company that makes digital cameras for use with computers, for about $5 million in stock.

The deal, expected to close by year-end, calls for Styles on Video to acquire all of Dycam’s outstanding stock in exchange for 346,140 shares of Styles on Video’s common stock, which has been trading lately at about $15 per share. Under the agreement, Styles on Video will also employ key employees of Dycam.

Dycam was formed in 1988, and for the six months ended June 30, it reported a profit of $306,400 on revenue of $895,800. For the nine months ended Sept. 30, Styles on Video showed a profit of $1.36 million on revenue of $5.38 million.

Styles on Video, which had an initial public stock offering in March, develops and markets imaging systems that allow customers to see how they would look with a new hairstyle or hair color before actually changing it. Styles on Video said Dycam’s digital imaging technology fit well with its own computer imaging technology.