Novell buys Suse Linux

Trade

1 April 2005

Novell has announced that is to buy Suse Linux, the world’s second largest Linux vendor, for $210bn in cash.

The news follows Novell’s purchase in August of Ximian, another Linux developer, but which has more expertise in desktop applications as opposed to server software, where Suse Linux’s strength lies. The latest acquisition will position the company to provide a full range of Linux applications. Novell now claims to be the only $1bn software company with a Linux distribution and the worldwide technical staff to support it.

Jack Messman, chairman and CEO of Novell, said the company was responding to customer demands for open, standards-based computing. ‘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.’

Suse Linux is the largest enterprise Linux company in Europe and also has a strong position in Latin America, Asia and North America.

Novell today also announced that IBM intends to make a $50m 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 and middleware products.

Novell began devoloping applications for Linux in early 2000, when it made its flagship eDirectory technology available on Linux. In April of this year, the company announced that it would make all the services that run on its NetWare operating system run on both the NetWare and Linux kernels in the future.

Novell Ireland employs 125 people at its headquarters in Dublin’s Grand Canal Street.

17/11/2003

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