VA Linux Snatches Andover.Net

Open source solutions giant VA Linux
Thursday snagged
Linux community site Andover.Net for
about $813 million in stock and cash.

With the agreement, which has already been approved by each company’s boards of
directors, all 15 million shares of Andover.Net (ANDN) common stock will be exchanged for .425 of VA Linux Systems (LNUX) common stock. VA Linux is also paying $60 million in cash.

VA Linux will control the popular open source developer network, reinforcing
its position as the only public company in the United States to offer
exclusively open source systems, software, service and Web-based developer

VA Linux said the goals of the acquisition will be to:

  • Consolidate the networks of VA Linux, which include, and with Andover.Net’s and to create a leading destination for open source developers, with nearly two-thirds of
    the total traffic of major open source sites and putting the combined
    network in the top 100 Web destinations worldwide

  • Coordinate the activities of the leading Web sites for open source
    development projects
  • Increase the opportunity for sponsorships and business partnership
    revenues across the company’s network
  • Expand the range of VA Linux’s products and services, such as the
    announcement last week of consulting to Hewlett Packard’s printer division
    in its open source software plans

  • Combine the companies’ teams, building next-generation services and
    e-commerce infrastructure for faster time-to-market

Andover.Net Chief Executive Officer Bruce Twickler called the deal a “perfect match.”

“We both believe that live software communities on the Net are more
important than packages that ship once every three years and companies that
simply intermediate between developers and users,” Twickler said.

The purchase makes sense as Andover.Net accounts for more than 50 percent of the
visits to Linux destinations. VA Linux’s deal is a sign of the increasing
popularity of open source with major players such as IBM Corp. (IBM), Hewlett-Packard Co. (HP) and
Intel Corp. (INTC) embracing the Linux operating system.

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