Mandrakesoft Acquires Conectiva to Expand its Size and R&D Capabilities

Mandrakesoft, a European Linux company, has announced a definitive agreement to acquire Conectiva, the number one Linux company in Brazil and Latin America.

This acquisition is expected to increase Mandrakesoft's size and R&D capabilities. Conectiva, founded in 1995, employs 60 people and has offices in Curitiba, Sao Paulo and Manaus, Brazil. The company had 1.7 million EUR (2.2 million USD) of revenues in their latest audited fiscal year, and reached break-even during the latest fiscal half-year. Conectiva has gained significant recognition for its adaptive approach to technology development for corporations, communities and large partners in the communication and technology sector in Latin America. Providing Linux services for corporations since its inception, Conectiva has a wide range of projects including ATM and teller solutions for financial institutions, infrastructure for the government, and a complete range of Linux solutions sold through major retail stores in Brazil. The technical achievements of Conectiva are also well known in the worldwide Linux community. Among them, the RPM port of apt-get (apt-rpm) and the new Smart Package Manager are just two examples of Conectiva's accomplishments.

In this context, Conectiva has long been sought by larger technology and communication industry players to develop specialized solutions, including embedded devices. Well-known customers include public sector and large accounts such as HSBC, Casas Bahia, IBM, HP, Siemens, White Martins-Praxair, Generali, and the Brazilian Army, Navy and Air Force. Examples of large deployments by Conectiva include 15,000 desktops and 800 servers in the Sao Paulo public schools.

Conectiva also has a strong position in the training business, training more than 15,000 people each year through its network of partners throughout Brazil. Mandrakesoft, founded in 1998, is the internationally recognized number one European Linux company. Mandrakesoft has built its business by designing and delivering user-friendly Linux products to both individuals and businesses, building a user base of more than 4 million users. In its latest fiscal year, Mandrakesoft's revenues reached 5.18 million EUR (6.7 million USD) for a net income of 1.39 million EUR (1.8 million USD). Mandrakesoft is also recognized as offering increasingly strong business solutions in both Europe and the USA. These solutions include server and desktop products for corporations, dedicated support, training, and online services such as Mandrakeclub and Mandrakeonline. Mandrakesoft's customers include such prestigious corporations as Carrefour, France Telecom, HP, Macif, Total, Verizon, and many government agencies including several French ministries. Mandrakesoft is acquiring all shares of Conectiva for a total amount of 1.79 million EUR (2.3 million USD) in stock. Both Mandrakesoft and Conectiva are profitable companies. The resulting corporation will benefit from several synergies by sharing development resources, commercial prospects and larger economies of scale, resulting in improved development potential for both companies. The merger also positions the resulting company as a leading worldwide provider of Linux.