September 30, 2004

According to initial reports released today, Linux distributor Red Hat has agreed to pay $20.5 million in cash to acquire certain Netscape assets from America Online (AOL).

Red Hat will acquire the Netscape Directory Server and Netscape Certificate Management System, and reportedly plans to incorporate the technologies into the open source operating system software it currently offers.

According to a statement issued by Red Hat, the company expects the acquisition to have "tremendous long-term strategic value for the open source industry and Red Hat Enterprise Linux subscribers."

The companies expect the deal to close in the third quarter of 2004.

The company said it could end up paying an another $2.5 million if certain customer orders are placed before April 30.

Source: The WHIR