Linux Headlines M&A Deals

Applied Micro +
YuniNetworks
, idealab! + Eve.com, NetLojix + onShore, Nortel + Architel, PLX
Technology + Sebring Networks
,
Quest Software +
Client/Server Solutions
, Red Hat + Bluecurve, Vitesse + Sitera, ZDNet + LinuxDevices.com

 Red Hat (RHAT) acquires Bluecurve

 

  
* 
Amount:
         $35.2
million

 

  
* 
Terms:
           
1.3 million RHAT shares

 

  
* 
Premium:
        n/a

 

  
* 
Industry:
        Linux
Software

 

  
* 
Scorecard:
      B

 


    RESEARCH TRIANGLE PARK, April 19–Red Hat (RHAT)
    , provider of software based on the alternative operating system Linux,
    said it agreed to buy privately held Bluecurve, maker of software
    that helps

    Internet companies plan their systems. The agreement calls for
    Red Hat to issue about 1,257,862 shares for all of the outstanding
    securities of Oakland, Calif.-based Bluecurve. The purchase price will be
    based on an average closing price of Red Hat’s common shares for a five-day
    period ended April 24.


    Through Bluecurve software, Red Hat customers who use Linux and non-Linux
    based systems will be able to simulate demands on their Internet networks
    and then plan accordingly to ensure their systems meet their demand.

     

 

 ZDNet (ZDZ) acquires
LinuxDevices.com

 

  
* 
Amount:
        
Undisclosed

 

  
* 
Terms:
           
n/a

 

  
* 
Premium:
        n/a

 

  
* 
Industry:
        Internet content
provider

 

  
* 
Scorecard:
      B-

 


    SAN FRANCISCO, April 19–ZDNet (ZDZ),
    which operates the leading Web destination for people who want to buy, use
    and learn about technology, today announced that it has acquired
    LinuxDevices.com, “the Embedded Linux Portal.” Terms of the
    transaction were not disclosed.


    ZDNet will incorporate LinuxDevices.com — as is — in its
    Linux Resource Center, one of the many IT-focused resource centers that can
    be found in the new

    ly launched ZDNet Business & Technology channel.

     

 

 Vitesse (VTSS) acquires Sitera

 

  
* 
Amount:
         $750
million

 

  
* 
Terms:
           
100% stock

 

  
* 
Premium:
        n/a

 

  
* 
Industry:
        Semiconductor
equipment

 

  
* 
Scorecard:
      A-

 


    CAMARILLO, April 19–Vitesse Semiconductor (VTSS)
    announced that it has agreed to acquire all of the equity interests of
    Sitera for $750 million in common stock. The transaction is expected
    to be completed in the quarter ending June 30, 2000.

     

 

 Nortel (NT) acquires Architel

 

  

* 
Amount:
         $395
million

 

  
* 
Terms:
           
100% stock

 

  
* 
Premium:
        n/a

 

  
* 
Industry:
        Networking
equipment

 

  
* 
Scorecard:
      A-

 


    TORONTO, April 19–Nortel Networks (NT),
    the world’s No. 2 network equipment supplier, continued its acquisition
    spree announcing it would buy telecommunications software developer
    Architel Systems (ASY) in an all-stock deal estimated at $395
    million. Under the transaction, expected to close early in the third
    quarter, Brampton, Ont.-based Nortel will exchange 0.21 of a common share
    for each Architel share.

     

 

 Quest Software (QSFT) acquires Client/Server
Solutions

 

  
* 
Amount:
         $13
million

 

  
* 
Terms:
           

100% cash

 

  
* 
Premium:
        n/a

 

  
* 
Industry:
        Corporate
software

 

  
* 
Scorecard:
      B-

 


    IRVINE, April 19–Quest Software (QSFT)
    announced it has acquired St. Louis-based Client/Server Solutions,
    the creator of Benchmark Factory, a highly scalable software solution for
    creating and measuring realistic and repeatable large-scale user loads for
    Web, database, and e-mail applications.


    Under the terms of the agreement, Quest has acquired Client/Server Solutions for
    $13 million in cash. The acquisition will be accounted for as a purchase.
    Quest will continue the development of Benchmark Factory in St. Louis.

     

 

 Applied Micro (AMCC) acquires
YuniNetworks

 

  
* 
Amount:
         $241
million

 

  
* 
Terms:
           
2.25 million AMCC shares

 

  
* 
Premium:
        n/a

 

  
* 
Industry:
        Semiconductor
equipment

 

  
* 
Scorecard:
      B+

 


    SAN DIEGO, April 19–Applied Micro Circuits (AMCC)
    , a leader in high-bandwidth silicon connectivity for the world’s optical
    networks, announced the signing of a definitive agreement to acquire San
    Diego-based YuniNetworks, a privately held fabless semiconductor
    company that specializes in providing scalable terabit switch fabric
    technology.


    Under the terms of the agreement, AMCC will issue up to 2,250,000 shares of
    its common stock and options in exchange for all outstanding shares of
    YuniNetworks’ preferred and common stock. The pending acquisition is a
    logical next step in AMCC’s mergers and acquisition strategy, and will
    expand AMCC’s available markets for high-speed communications products.

     

 

 PLX Technology (PLXT) acquires Sebring
Networks

 

  
* 
Amount:
         $48
million

 

  
* 
Terms:
           
100% stock

 

  
* 
Premium:
        n/a

 

  
*&nb

sp;
Industry:
        Semiconductor
equipment

 

  
* 
Scorecard:
      B+

 


    SUNNYVALE, April 19–PLX Technology (PLXT)
    announced a definitive agreement to acquire privately held Sebring
    Networks
    of Campbell, California. The
    Sebring acquisition will also
    expand PLX’s engineering capability in key technology areas including
    switch fabric architecture, physical link layer interface design, high
    availability software and communications system architecture.

     

 

 NetLojix (NETX) acquires onShore

 

  
* 
Amount:
         $4.25
million

 

  
* 
Terms:
           
1.35 million NETX shares

 

  
* 
Premium:
        n/a

 

  
* 
Industry:
        Network
infrastructure provider

 

  
* 
Scorecard:
      C+

 


    SANTA BARBARA, April 19–NetLojix (NETX)
    , a leading eBusiness enabler that provides network infrastructure and
    technical support to the mid-size business market, announced that it has
    entered into a letter of intent to acquire onShore, a privately-held
    data services company that provides system integration, technical support,
    and web-centric applications development services for mid-size businesses
    in the Chicago metropolitan area.


    The Letter of Intent contemplates that NetLojix would purchase all the
    outstanding common stock of onShore
    using 1,350,000 shares of NetLojix common stock and assumption of existing
    obligations.

     

 

 idealab! takes controlling stake in
Eve.com

 

  
* 
Amount:
        
Undisclosed

 

  
* 
Terms:
           
n/a

 

  
* 
Premium:
        n/a

 

  
* 
Industry:
        Online beauty
e-tailer

 

  
* 
Scorecard:
      C

 


    PASADENA, April 19–idealab!, a leading creator and operator
    of Internet businesses, announced that it has agreed to take a controlling
    stake in online beauty e-tailer, Eve.com.

    Eve.com joined the idealab! network of companies in November
    1998. idealab! intends to accelerate Eve.com’s expansion into other product
    categories. Bill Gross, founder and chairman of idealab!, will assume the
    role of chairman of Eve.com effective immediately.

     

 

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