CNET también está disponible en español.

Ir a español

Don't show this again

Tech Industry

VA Linux to spend $200+ million on acquisitions

VA Linux (Nasdaq: LNUX) will spend more than $200 million to buy a pair of privately-held companies.

After market close Wednesday, the maker of servers based on the Linux operating system said it would pay $10 million cash and issue 1.8 million shares to buy TruSolutions. VA Linux also unveiled plans to buy NetAttach for $10 million cash and 286,000 shares. Based on Wednesday's closing price, VA Linux will issue $179.1 million in stock for TruSolutions and $28.46 million in stock for NetAttach.

TruSolutions designs high-density rackmount servers. The company produces an entry-level server that the companies said would complement a high-end server unveiled by VA Linux earlier Wednesday.

NetAttach specializes in storage technology, including the ability to create devices for the growing network storage market, VA Linux said.

Both deals are expected to close in 30 days. The purchases will add to revenue and operating income, excluding acquisition-related charges, VA Linux said.

Wednesday's announcement marks the second and third sizable purchases for VA Linux in its brief history as a publicly-traded company. Last month VA Linux unveiled plans to buy (Nasdaq: ANDN), an operator of web communities devoted to Linux.

Shares of VA Linux ended Wednesday's regular trading at 99 1/2, down 2 3/4 for the session amid a broad decline among technology stocks. The stock has tumbled nearly 60 percent since peaking in December, shortly after its IPO.

• VA Linux posts loss, but sales surge
• Linux love: VA Linux buys>