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BW: Red Hat Completes C2Net Acquisition for Approximately $42.7 Million

“Red Hat, the leader in open source Internet infrastructure
solutions, completed the acquisition of privately-held C2Net
Software, Inc., the developer of the popular 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.”


Press Release