The acquisition of TruSolutions will give VA Linux a new slim server design alongside a new Network Engines design that VA began selling today, VA chief executive Larry Augustin said. The acquisition of NetAttach will help VA build storage systems made of stacks of servers bolted to racks, he said.
The acquisitions are the latest in a spate among Linux companies, which are snapping up smaller entities about as fast as entrepreneurs can start them.
VA Linux plans more acquisitions to bolster its Linux computer line, its services and its programming talent, Augustin said. Linuxcare, a seller of technical support and consulting services for Linux planning an initial public offering next week, would make sense as an acquisition, but "I don't think we've had any detailed discussions," Augustin said.
TruSolutions will be acquired for 1.8 million VA shares and $10 million cash, a total of about $189 million based on today's closing price of $99.50. The NetAttach acquisition is for 286,000 shares and $10 million cash, a total of about $38 million.
TruSolutions, based in San Diego, brings about 60 new employees to VA. NetAttach, a start-up in Santa Clara, Calif., brings about a dozen, Augustin said.
VA's stock has been slipping since its IPO in December, and today it sank below $100 for the first time.
The Caldera Systems IPO is expected later this week, while Linuxcare is expected to go public next week. His company will be insulated from those events to an extent, Augustin said, because investors are beginning to be able to distinguish one Linux company from another.