Slashdot Mirror
Mandrakesoft Acquires Conectiva
rednaxel writes "This morning, both companies issued press releases about the merge. French Mandrakesoft is acquiring all shares of brazilian Conectiva for a total amount of 1.79 million EUR (2.3 million USD) in stock." CNet has coverage of the merger as well. From the article: "This won't elevate us to the status of Red Hat or Novell/SuSE yet, of course, but this is a significant growth for us..."
It's a stock swap. No money is involved. This is typical of how mergers often work. The companies agree to merge, and they agree what the company being acquired is worth, do some math, and convert the shares of the acquired company into shares of the new company. The math is much like doing a stock split, though the ratio usually involves a number of decimal points. (The accounting for the investors is also much like a stock split.)
The real question in this case is why is Mandrakesoft's stock worth enough for Conectiva investors to consider this to be a worthwhile deal (as opposed to grabbing on to a sinking ship). I haven't looked at the business side of either company, so I can't comment there.
Brazil's government announced earlier this year it was planning to switch 300,000 PCs from Windows to Linux. I don't know if any contracts have been signed already, but I guess it's not unlikely they would favor a distributor based in Brazil (similar to when the city of Munich went with SuSE).
I'm not terribly familiar with Conectiva. What does the Mandrake distribution gain with this merger? Just more experienced developers or did Conectiva have certain features that made it attractive?
Well Connectiva were one of the first distributions to embrace apt-rpm (they may even have done a lot of the development work, I can't recall) and provide some of the major development impetus behind Synpatic which is far and away the best GUI package manager around. As far as I am concerned what Mandrake could gain from Connectiva is a move to apt-rpm and Synaptic. I know URPMI has a lot of fans but I think apt and Aynaptic may be the way to go for pakcage management. It helps standardise things as well - all the Debian based distros use apt, and several use Synaptic by default as well, and despite yum being the default apt-rpm and Synaptic is very popular on Fedora, and even SuSE (instead of YaST).
At the very least I hope Connectiva stays with apt-rpm and Synaptic. I would hate to see them shift to URPMI at this stage.
Jedidiah.
Craft Beer Programming T-shirts
Marcelo Tosatti has been maintaining the 2.4 kernels you've been running for a long time. He's a Brazilian working for Conectiva.
You on the other hand are an asshole.
From the PR: "Mandrakesoft, founded in 1998, is the internationally recognized number one European Linux company. Mandrakesoft has built its business by designing and delivering user-friendly Linux products to both individuals and businesses, building a user base of more than 4 million users. In its latest fiscal year, Mandrakesoft's revenues reached 5.18 million EUR (6.7 million USD) for a net income of 1.39 million EUR (1.8 million USD)."
Let me clear some misconceptions on your post.
First, the majority of Conectiva users speak portugues, not spanish. I would guess at least 70% of the user base is in Brazil.
Second, Conectiva has been profitable for some time now, so this won't be exactly saving the Conectiva platform, as if it were dying.
Conectiva has some big corporate customers, including several banks. One of them is even using Conectiva Linux on their ATM machine. So I really don't understand why you wrote "customers" (using quotation marks).
Also, it is Conectiva, with just 1 N. Not Connectiva.
About what I think, is that people should do their homework before posting. Then again, this IS slashdot.
morcego