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Security Dynamics plans second offering

The company announces it is heading back to the public to round up additional funding in a secondary offering expected to generate $91.4 million.

Security Dynamics Technologies (SDTI) today announced it is heading back to the public to round up some additional funding in a secondary offering that is expected to generate $91.4 million.

The company filed today with the Securities and Exchange Commission for an offering of 2.5 million shares of common stock. Of these shares, 1.824 million are being offered by shareholders (from which the company will not receive capital); the remaining 676,000 shares are being offered by Security Dynamics.

Shares gained 1-5/16 in trading to close at 36-9/16. Based on the closing price, the company will raise $24.7 million in the offering.

Security Dynamics expects to use the net proceeds from the offering for general corporate purposes, and to further the company's strategy through possible acquisitions.

The company's recent acquisitions include July's purchase of Sweden's DynaSoft for about $115 million in stock and cash. Security Dynamics issued about 2.7 million shares of common stock plus $6 million in cash for the purchase, which will be accounted for as a pooling of interests. Last year the company bought encryption firm RSA Data Security for $200 million.

For the upcoming offering, the company has granted the underwriters an option to purchase up to an additional 375,000 shares of common stock to cover over-allotments, if any.

The offer is being managed by BT Alex. Brown, Robertson, Stephens & Company, and Cowen & Company.