In 1944 Kleinschmidt demonstrated their lightweight unit to the Signal Corps and in 1949 their design was adopted for the Army's portable needs. In 1956, Kleinschmidt Labs merged with Smith-Corona, which then merged with the Marchant Calculating Machine Co., forming the SCM Corporation. By 1979, the Kleinschmidt division was branching off into Electronic Data Interchange, a business in which they became very successful, and replaced the mechanical products, including teleprinters.