Caldera Systems, which develops Linux software for Internet access, said on Wednesday it would offer the industry`s first Internet platform able to accommodate both Linux and Unix operating systems.
Caldera said it would acquire two divisions from Santa Cruz Operation, a leading provider of Unix operating systems, and use one, the Professional Services division, to set up a new company offering the unique platform.
In exchange for its Professional Services and Server Software divisions, Santa Cruz will receive a 28% stake in Caldera plus $7 million in cash, the companies said. The 28% stake will amount to about 17.54 million Caldera shares worth nearly $300 million, they said.
Caldera said it would form a new holding company, Caldera, to acquire assets from the two Santa Cruz divisions, including related work force, and will retain exclusive distribution rights for the Santa Cruz OpenServer product line. Revenues for OpenServer were $11.1 million in the fiscal 2000 third quarter.
Following completion of the deal, which the companies anticipate will occur in October, Ransom Love, current chief executive of Caldera, will become chief executive of Caldera, and David McCrabb, current president of the Santa Cruz Server Software division, will become chief operating officer.
Caldera is based in Orem, Utah. Santa Cruz is based in Santa Cruz, California.
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