Mandrakesoft has agreed to acquire Conectiva in an all-stock deal valued at $2.3 million.
Europe-based Linux distributor Mandrakesoft S.A. on Thursday said it has agreed to acquire Brazilian company Conectiva S.A. in an all-stock deal valued at $2.3 million.
The acquisition would bring together two second-tier Linux companies, forming a combined business with $8.9 million in revenues.
The deal would extend Mandrakesoft's reach into Brazil and Latin America, and strengthen its research and development capabilities, company officials said. Both companies distribute desktop and server versions of Linux, and sell support services.
"Combining the two businesses enables us to extend the scope of our offering and address more businesses by compounding development and commercial assets, resulting in strong synergies," Francois Bancilhon, chief executive of Paris-based Mandrakesoft, said in a statement.
Under the deal, Mandrakesoft is acquiring all shares of Conectiva for $2.3 million in stock.
Connectiva, founded in 1995, employs 60 people in offices in Curitiba, Sao Paolo and Manaus, Brazil. The company reached break-even during the first half of its current fiscal year, officials said.
Both companies are founding members of the Linux Core Consortium, an organization formed to develop technology that would potentially make it easier for software makers to build products for multiple distributions of the open-source operating system.
The LCC is developing a runtime environment and software development kit that would standardize programming of software to the interfaces of the Linux kernel.
The combined company of Mandrakesoft and Conectiva plans to build its next corporate releases on top of the LCC implementation.
IT's Reputation: What the Data SaysInformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business really views IT's performance in delivering services - and, more important, powering innovation. Our results suggest IT leaders should worry less about whether they're getting enough resources and more about the relationships they have with business unit peers.
What The Business Really Thinks Of IT: 3 Hard TruthsThey say perception is reality. If so, many in-house IT departments have reason to worry. InformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business views IT's performance in delivering services - and, more important, powering innovation. The news isn't great.
InformationWeek Must Reads Oct. 21, 2014InformationWeek's new Must Reads is a compendium of our best recent coverage of digital strategy. Learn why you should learn to embrace DevOps, how to avoid roadblocks for digital projects, what the five steps to API management are, and more.