Preview Software Inc is combining with Portland Software Inc on what it insists is a merger of equals to create a $20m electronic software distribution outfit. Both are private, venture capital funded companies that have yet to make it into profitability. Portland, from Portland, Oregon, was formed in 1995 and has concentrated on the server side of the market with its ZipLock server system, which integrates goods fulfillment with associated electronic transactions, digital licensing and multiple tiers of pricing and marketing information. The software can be integrated with electronic commerce servers such as Microsoft Site Server, iCAT and Open Market Transact. Preview, based in Cupertino, California, was formed in its current guise in 1996, but was previously known as Dynasoft. Its product, the Vbox virtual box software, is client-based, enabling software publishers to electronically package titles for digital distribution and sales, and supports such things as try-before- you-buy and software rental. It has been incorporated into 1,200 software titles to date, the company says. It is also used by web-based distributors such as Buydirect.com, software.net, eWarehouse and NetScape Software Depot. Customers currently using both products include Microsoft Corp, Quarterdeck Inc and Broderbund Software Inc. Whether or not a merger of equals, Preview’s president and CEO Dr Vincent Pluvinage steps into the role of CEO at the combined company, and Cupertino becomes the headquarters, although the Portland base will be retained. Charles Jennings, co-founder and CEO of Portland, becomes a director of the new company.