MandrakeSoft acquires Linux support company Edge IT

Posted on 1 Jul 2004 at 16:20

MandrakeSoft is gearing up for a full scale assault on the French corporate and public sector with the acquisition of Linux support company Edge IT.

Edge IT already counts OECD, the world economic organization, Fondation Nationale des Sciences Politiques, a French Political Science School, and Prisma Presse, a publishing company, among its customers.

And with the French government recently talking up a renewed appetite for the cost-savings associated with open source, Mandrake is keen to be seen to have the stomach to cater for the support needed by the public sector and business.

François Bancilhon, CEO of Mandrakesoft said: 'I am delighted that Edge IT decided to join the Mandrakesoft family. They will bring to us their extensive knowledge of the corporate market, their strong expertise in delivering support and services and will be a great complement to our service team.'

It's not a huge deal: Edge IT only has six employees; and there will be no cash exchanged - it's a stock-swap deal with the shareholders of Edge-IT ending up with about 70,000 Mandrakesoft shares, which represents 1.47 per cent of outstanding shares.

But Edge IT has the kind of flagship clients that Mandrake can use to show its potential customers it can back up its well-regarded software with enterprise class support.

And it is certainly indicative of how aggressively Mandrake is going about rebuilding its business after only emerging out of bankruptcy protection months ago.

The deal is in the 'definitive agreement' stage and is expected to be approved within a few months.

Author: Matt Whipp