Novell futher Linux push with SUSE buyout
Novell futher Linux push with SUSE buyout
Network operating systems provider Novell has taken another big step down the Linux road with the announcement that it has agreed to acquire enterprise Linux company SUSE Linux for US$210 million in cash.
The move will allow Novell to deliver Linux and all its components, from the server to the desktop. The transaction is subject to regulatory approval and the winding up of shareholder agreements. Novell expects the transaction to close by the end of its first fiscal quarter (January 2004).
This latest move follows Novell's August purchase of Ximian, a Linux server and desktop solutions provider.
Novell also announced that IBM intends to make a US$50 million investment in Novell convertible preferred stock. In addition, Novell and IBM are negotiating extensions to the current commercial agreements between IBM and SUSE Linux for the continued support of SUSE Linux on IBM's eServer products and middleware products to provide for product and marketing support arrangements related to SUSE Linux. Both of these agreements will be effective when the acquisition is completed.
"Responding to customer demands for open, standards-based computing, Novell has been dedicated to a cross-platform vision for four years now, and Linux is an increasingly important part of that strategy," said Jack Messman, chairman and CEO of Novell. "The acquisition of SUSE Linux will complete Novell's ability to offer enterprise-class Linux solutions to our customers from the desktop to the server. Novell is bringing our significant resources to bear to help customers adopt Linux with more confidence, giving them the freedom of choice Linux provides without the anxiety over whether an open source solution can truly be relied on for mission-critical functions."
"Novell understands the power of open, standards-based computing, and has been moving in that direction for some time," said Richard Seibt, CEO of SUSE Linux. "Novell's global reach, marketing expertise and reputation for security, reliability and global enterprise-level support are exactly what we've been seeking to take SUSE Linux to the next level. We've also been impressed by the incredible loyalty and competence of Novell customers and business partners, and we're looking forward to joining forces to help customers gain the benefits of Linux and to help Novell continue to expand its role in the open source community."
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