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San Francisco Business Times: Turbolinux, Linuxcare set to wed

Jan 24, 2001, 22:16 (2 Talkback[s])
(Other stories by Daniel S. Levine)

"Turbolinux, a provider of high-performance Linux bundled with commercial software, has signed a letter of intent to acquire Linuxcare, a San Francisco-based provider of training, support and integration services for Linux users. News of the Brisbane-based company's planned acquisition first became public on a posting to the web site Linuxnews.com. A spokeswoman for Linuxcare confirmed there is a signed letter of intent, but said a deal has not yet been finalized."

"Details of the deal, which is expected to be a stock swap, are still being negotiated. Paul Thomas, CEO of Turbolinux, will continue to head the company, a source familiar with the negotiations said. There is no indication yet as to what if any layoffs would follow a merger, although there is some duplication between the staffs. Turbolinux has about 250 employees and Linuxcare has about 150."

"Both companies have looked at acquisition targets or being acquired. Right now there is a push on scale," said the source. "You've got to be a decent-sized player in this market to be viable going forward. You have to start ramping the top line revenues to be taken seriously in the public markets and you have to scale in order to take care of your big customers."

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