Linux distributor Caldera Systems and the Santa Cruz Operation finally inked a deal to transfer control of several divisions of the Unix firm to Caldera.
Caldera will acquire SCO's server software division and professional services division, both of which will become part of a new holding company, Caldera.
SCO will have a 28 percent stake in Caldera, which will be backed by US$7 million cash and 17.54 million shares of Caldera Systems stock, worth about US$121.7 million based on Tuesday closing price of 6 15/16.
As part of the deal, The Canopy Group, a major stockholder of Caldera Systems, will loan US$18 million to SCO. SCO will retain its Tarantella Division, and the SCO OpenServer revenue stream and intellectual properties.
The deal has been rumored for weeks. By combining SCO's units with its own business, Caldera will be able to offer what it has dubbed an Open Internet Platform, combining Linux and UNIX server software and services.
Caldera said products, solutions, and services developed for the Open Internet Platform will be available through more than 15,000 partners worldwide.
"Caldera will further broaden and validate both the Linux and UNIX industries and communities, by providing open access to its unified Linux and UNIX technologies, and by offering support, training and professional services to customers worldwide," Caldera Systems CEO Ransom Love said in a release.
Following the acquisition, Love will become CEO of Caldera, and David McCrabb, current president of the SCO Server Software Division, will become Caldera's president and COO.
Jim Wilt, current president of the SCO Professional Services Division will become president of the newly formed Caldera Services Division. SCO CEO Doug Michels will join the Caldera board of directors. SCO will also appoint a second Caldera board member.
The two companies will host Forum2000 later this month in Santa Cruz, where Caldera plans to unveil their updated product offering.
