Dublin-based physics group Havok.com has acquired a complementary technology group in Munich, Ipion, in an estimated $2 million (€2.09 million) cash and stock deal.

The union of Havok and Ipion puts it in first position in the physics simulation for computer games market, according to company founder and former Trinity College lecturer Mr Hugh Reynolds. Combined sales for both companies reached $1 million in the last six months.

Both companies specialise in applying physics to the next generation of computer games, medical and online applications, by offering the user a more realistic virtual experience.

The new company will trade under the Havok brand.