Equiinet merger could lead to quick IPO

The merger between internet applications company Equiinet and German-owned encryption specialist DICA technologies, has raised speculation that the merged companies plan an imminent IPO.

The deal, announced today, creates a company with offices and sales outlets in the UK, Germany and the US, which will trade under the name DICA Technologies after the company acquired all Equiinet's stock.

The board will combine the management of both companies.

As well as bringing together the companies' sales infrastructures, executives said the deal strengthens their product ranges. DICA Technologies' Script Guard, which allows companies to encrypt email between remote offices, fits well with Equiinet's NetPilot product - an internet usage application for LAN networks.

'Serial entrepreneur' Bob Jones, chairman and founder of Equiinet, said the merger with DICA was "a truer merger than any of the other ones I've been involved with".

Jones added: "In the technology market you need to attain market share quickly. My intention with Equiinet was always to grow very quickly and this merger will help us speed that process considerably."

Jones refused to deny speculation that the companies were working towards an IPO on the German stock market. It is understood that companies are planning to raise around £50m to fund further European expansion.