Network Computing is part of the Informa Tech Division of Informa PLC
Novell Acquires SuSE Linux
Novell Inc. said on Nov. 4 it has agreed to acquire SuSE Linux AG for $210 million in cash, a move that would make the network software company the No. 2 seller of the open source operating system and intensify competition with Microsoft Corp.
Along with the purchase, the Provo, Utah, company said it was negotiating with IBM to extend agreements to support SuSE Linux on Big Blue's eServer and software infrastructure products. In addition, IBM plans to buy $50 million of Novell convertible preferred stock.
The acquisition, which is subject to regulatory approval, is expected to close by the end of January 2004. The extended agreement with IBM, as well as IBM's investment, is scheduled to close at the same time.
Investors responded quickly to the news, driving up Novell's stock 32.05 percent, or $1.94, to $7.99 a share in afternoon trading on the New York Stock Exchange. Shares of Red Hat Inc., the No. 1 Linux seller, dropped 14.11 percent, or $2.17, to $13.21 a share.
The acquisition means Novell becomes an immediate market leader in Linux and will have a worldwide technical staff of more than 600 people supporting the OS, Jack Messman, chairman and chief executive of Novell, said.
"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," Messman said in a statement.
Recommended For You
Developing and managing a network budget is hard work for network professionals, who often get hit with new projects that they know nothing about. Is there a better way to manage network spending?
Making the jump from outdated legacy technology to a more modern digital infrastructure will allow businesses to innovate at the speed and scale needed in today’s marketplace.
The business world is speeding up. The longer IT leaders wait to get their needs met, the more at risk their businesses and their jobs will be.