A blog for the enterprise open source community
A day of acquisitionsRaven Zachary, April 25, 2007 @ 11:10 pm ET
If you read my 451 CAOS Links post yesterday (Tuesday, April 24th, 2007), you probably noticed that the top news items of the day were all acquisitions. M&A activity related to open source is on the rise, but the heightened activity level yesterday was an anomaly. To review…
1) CollabNet acquires SourceForge Enterprise Edition from VA Software (press release)
CollabNet, Inc. the leading provider of collaborative software development solutions, and VA Software Corporation (Nasdaq: LNUX), today announced the execution and closing of an asset purchase transaction whereby CollabNet purchased the SourceForge Enterprise Edition business from VA Software in consideration for an equity ownership stake in CollabNet. The parties have also entered into a 30 month media relationship for online advertising services.
VA Software was repositioning itself as a media company, focused on advertising revenue from its online properties such as SourceForge, Freshmeat, Slashdot, Linux.com, and Newsforge. Selling its SourceForge Enterprise business to CollabNet makes sense, and this move further strengthens CollabNet’s position in the collaborative software development space. I suspect that we’ll see the two product lines merge in the coming years, although CollabNet is committing to a road map for both product lines in the near term. With the addition of SourceForge Enterprise Edition, CollabNet has now over 200 employees and 300 customers. If you’re interested in the deal terms, you can take a look at the Asset Purchase Agreement, thanks to the SEC. In summary, CollabNet gives VA Software a small amount of cash, a lot of stock, and a $2m advertising contract in exchange for the SourceForge Enterprise Edition code and customer base.
2) Red Hat acquires MetaMatrix for JBoss SOA (press release)
Red Hat has signed a definitive agreement to acquire the business of MetaMatrix, a leader in data management and integration software. This market is estimated to reach $1.3B in 2007 according to Forrester Research. The consummation of the transaction is subject to the satisfaction of certain conditions to closing set forth in the acquisition agreement. Once the transaction is completed, MetaMatrix will be integrated into Red Hat’s JBoss division.
Red Hat makes a move to build out JBoss’ SOA portfolio. This is part of an opportunity that Red Hat is pursuing with JBoss for Unix to Linux migrations. Deal terms were not disclosed. I think it’s safe to assume that Red Hat will continue to look for acquisition opportunities that enhance its JBoss offering. This was not the first.
3) MontaVista acquires MontaVista Ltd and Liberte (press release)
MontaVista Software, Inc, the global leader in embedded Linux, has bought two UK-based companies in a move that strengthens its ability to meet exploding demand in Europe for commercial Linux products and services.
MontaVista picks up a UK-based joint venture (MontaVista Ltd.) and an embedded services company (Liberte Software) in a move to strengthen its European presence, and increase its professional services capabilities. Deal terms were not disclosed.
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