8-K

               SECURITIES AND EXCHANGE COMMISSION

                     WASHINGTON, D.C.  20549
                          ____________


                             FORM 8-K

                          CURRENT REPORT
                                 
              Pursuant to Section 13 or 15(d) of the

                 Securities Exchange Act of 1934



Date of Report (Date of earliest event reported): October 1, 1997

                    SAFEGUARD SCIENTIFICS, INC.
      ----------------------------------------------------
     (Exact Name of Registrant as Specified in its Charter)


PENNSYLVANIA                1-5620                23-1609753
- --------------------------------------------------------------------
(State or other jurisdiction  (Commission    (I.R.S. Employer
  of incorporation)           File Number)    Identification No.)


800 The Safeguard Building  435 Devon Park Drive, Wayne, PA   19087
- ---------------------------------------------------------------------
(Address of principal executive offices)                   (Zip Code)


Registrant's telephone number, including area code: (610) 293-0600





ITEM 5.   Other Events.

          On October 1, 1997, Safeguard Scientifics, Inc. announced
by a press release that it had sold its Pioneer Metal Finishing
Division to the current management group at Pioneer.  The total
purchase price is $37 million in cash, subordinated notes, and
assumed obligations.    The press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.

ITEM 7.   Financial Statements and Exhibits
               
     (a)  Financial Statements.

          None.

     (b)  Pro Forma Financial Information.

          None.

     (c)  Exhibits

          99.1 Press Release of Safeguard Scientifics, Inc. dated
               October 1, 1997.
          

                                       2


                          
                              SIGNATURE
                                   

     Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this Report to be signed on
its behalf by the undersigned thereunto duly authorized.


Dated:    October 9, 1997          SAFEGUARD SCIENTIFICS, INC.



                                   By: /s/James A. Ounsworth
                                       ----------------------
                                        James A. Ounsworth,
                                        Sr. Vice President 
                                        and General Counsel 



                                       3
 



                          EXHIBIT INDEX



      DOCUMENT

99.1  Press Release of Safeguard Scientifics, Inc. dated
      October 1, 1997


 
                                       4

EX-99.1

                                                       EXHIBIT 99.1



                                               FOR IMMEDIATE RELEASE



       SAFEGUARD SCIENTIFICS SELLS PIONEER METAL FINISHING
              DIVISION TO CURRENT MANAGEMENT GROUP 

Wayne, PA, and Green Bay, WI, October 1, 1997 - Safeguard
Scientifics, Inc. (NYSE:SFE), the New York Stock Exchange listed
strategic information systems company and Pioneer Metal Finishing
Corporation, are pleased to announce the completion of the purchase
of the Pioneer Metal Finishing Division by the current management
group at Pioneer.  This team is led by CEO and President, Richard
L. Dudkiewicz and includes Vice-President/General Manager - Green
Bay Division, Susan M. Stary; Vice-President/General Manager -
Minneapolis Division, Matthew J. Effertz; Vice-President Marketing
and Technical Development, Kurt R. Voss; and Division Manager -
Monroe Division, Scott Turner.  The total purchase price is $37
million in cash, subordinated notes, and assumed obligations with
financing provided by Bank One, Wisconsin. 

Richard Dudkiewicz commented, "Safeguard has demonstrated its true
partnership philosophy by offering this unique opportunity to our
management group.  We believe that this acquisition ensures
continued stability for our employees, customers and suppliers into
the 21st century."  PMFC specializes in anodizing of aluminum parts
and electroless nickel plating parts of various metal alloys for
computer, automotive, cookware, electronic components and other
applications.  PMFC currently employs in excess of 500 people, and
has sales of over $33 million at its three divisions located in
Green Bay, Wisconsin; Minneapolis, Minnesota; and Monroe, Michigan.

Safeguard acquired Pioneer in 1968 and participated in its
emergence as an industry leader.  "We are very pleased with our
association with Pioneer throughout the years.  This arrangement,
in keeping with Safeguard's strategy of focusing on the information
systems arena, represents a win for all parties involved.  I want
to congratulate all the employees at PMFC for achieving their
status as a leader in the metal finishing industry and wish them
continued success," said Pete Musser, Chairman and CEO of Safeguard
Scientifics. 



Safeguard is a unique partnership of entrepreneurial companies
focused on information technology markets.  Safeguard has a proven
track record of bringing emerging companies to market through
rights offerings to Safeguard shareholders.  Past rights offerings
include Novell, Inc., CompuCom Systems, Inc., Cambridge Technology
Partners (Massachusetts), Inc., Coherent Communications Systems
Corporation, USDATA Corporation, Integrated Systems Consulting
Group, Inc., Sanchez Computer Associates, Inc., Diamond Technology
Partners Incorporated  and, most recently, ChromaVision Medical
Systems, Inc.

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