DICA Technologies Merges with Equiinet
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DICA Technologies will acquire all of all of Equiinet's stock in an all-share deal, turning Equiinet into a wholly-owned subsidiary, operating from the U.K. as DICA Technologies Ltd.
Dr. Hartmut Ilse, founder of DICA Technologies, said the two companies complemented each other perfectly, both in terms of the products they offer and the markets they serve.
Equiinet's Bob Jones, chairman and founder of the company that has become the market leader in the U.K. despite hot competition from Network Appliance and other U.S. companies, said the merger made "perfect sense."
With sales relations in over 40 countries worldwide, DICA will add substantially to Equiinet's sales and marketing of the NetPilot range of Internet server appliances. In turn, DICA brings a hardware-based encryption product, sold under the ScryptGuard brand, which encrypts each e-mail sent over the Internet.
Prior to the merger, the two companies had revenues of US $8.5 million in 1999. Significantly, DICA posted a revenue growth rate of 142 percent during 1998/99 and expects to maintain high growth following its acquisition of Equiinet.
Stefan Gieseler, DICA's chief executive officer in charge of sales and marketing, said he could foresee "a great equity story for shareholders" as a result of the merger.
"With our newly developed ScryptGuard... we provide a unique solution for small and medium enterprises which puts us on a fast track to exploit the enormous potential of our target Internet Security market, with an estimated total volume of over 6 billion euros," said Gieseler.
DICA Technologies is no stranger to mergers, having been formed originally by the 1998 merger of Germany's DTM Data TeleMark GmbH and Promptus Communications, Inc., of Rhode Island. Outside of Europe and North America it has subsidiaries in Venezuela and Australia.