The merger between Irish company, Baltimore Technologies and UK based Zergo Holdings has been finalised. Under the new arrangement, the two information security companies will operate under the name Baltimore. Positive market reaction to the merger means that the company is now valued at more than $75 million (#65.2 million).

Following the announcement of the deal in mid-December, shares in Zergo, which is quoted on the London Stock Exchange, soared to a high of 365 pence sterling. Prior to the announcement Zergo shares had traded at around 170 pence. Yesterday Zergo shares closed at 485 pence.

The merger is designed to create a global leader in public key infrastructure (PKI) technology, which allows secure electronic transactions and information exchange. One of the key attractions of the merger to Zergo was the strength of the Baltimore brand name. This was copper-fastened recently when Baltimore encryption technology was used for the digital signing of an agreement between US President Bill Clinton and the Taoiseach Mr Ahern.

Now the newly merged company, with combined annual revenues of more than $30 million and over 350 employees worldwide, will trade globally under the name Baltimore. A proposal will be put forward to change the name of parent company Zergo Holdings to Baltimore Technologies at the company's annual general meeting in April.

Mr Fran Rooney, former president and CEO of Baltimore Technologies, now becomes chief operating officer of the new company. "The new Baltimore is commencing an aggressive sales and marketing campaign," he said in a statement yesterday.

"The use of PKI and cryptographic technology for e-commerce and enterprise security is expected to increase significantly and Baltimore will be at the forefront of this market."

The battle for market leadership is expected to be played out in the US in particular, where Professor Henry Beker, Zergo's chairman and chief executive has said the market is "open for exploitation".

(# signifies the euro)