LONDON (02/03/2000) - One-stop Linux company VA Linux Systems Inc. today announced that it will acquire Andover.Net Inc., a Linux news and information provider, for US$60 million in cash, plus a stock swap.
Under the terms of the deal, Andover.Net shareholders will receive .425 shares of VA Linux common stock for each share of Andover.Net stock, reduced by an total of $60 million in cash payments to the Andover.Net shareholders, the companies said in a statement.
The transaction, which has been approved by the boards of both companies, is expected to be completed during VA's third quarter, they said.
Andover.Net runs a consortium of Linux-related Web sites, including its namesake, as well as slashdot.org, freshmeat.net and freecode.com. VA distributes and services the open-source Linux operating system, and runs the Web sites linux.com, sourceforge.net, and Themes.org.
By consolidating their sites, the two companies will claim up to 2/3 of the Web traffic to open source Web sites, according to the statement.
Both companies made news in the financial markets last year, Andover.Net by purchasing Slashdot, one of the open source community's most-loved sites, and VA Linux through its IPO (initial public offering), which was one of the most successful Wall Street had ever seen. [See "Slashdot Swooped," July 1, 1999 and "VA Linux IPO Soars Almost 700 Percent," Dec. 9, 1999.]The transaction is still subject to shareholder approval and customary closing conditions.
VA Linux Systems, in Sunnyvale, California, is at +1-408-542-8600, or at http://www.valinux.com. Andover.Net, based in Acton, Massachusetts, can be reached at +1 978-635-5300, or on the Web at http://www.andover.net/.