“Red Hat completed the acquisition of privately-held C2Net
Software, the developer of the Apache-based Stronghold secure web
server. C2Net’s Stronghold, which is available for many operating
system platforms, is the most popular commercial SSL Web server on
the Internet with more than 30 percent of the secure web server
market.”
“The transaction was valued at approximately $42.7 million based
on an average closing price of Red Hat’s common shares for a
seven-day period ended August 16, 2000. Under the terms of the
transaction, Red Hat issued 1,992,877 shares of Red Hat common
stock in exchange for all of the outstanding securities of Oakland,
California-based C2Net. The acquisition has been accounted for as a
purchase.”
“Red Hat continues to broaden its product offerings to provide a
single source of complete Internet infrastructure solutions for its
enterprise customers. C2Net is the fifth major acquisition for Red
Hat in 2000 following the acquisition of: (1) WireSpeed, a leading
developer of network and telecommunications software that helps
connect a new generation of post-PC and embedded devices to the
Internet and secure Web servers like Stronghold; (2) Bluecurve,
whose performance management solutions allow organizations to
simulate and measure user activity and demands placed on the
Internet infrastructure and applications; (3) Hell’s Kitchen
Systems, Inc. (HKS), a provider of e-commerce payment processing
software critical for any company trying to conduct business on the
Web; and, (4) Cygnus Solutions, a top provider of a wide variety of
software, tools, services and developer support for servers,
real-time operating systems (RTOS) and embedded, post-PC
platforms.”