Linux vendor Mandrakesoft to acquire Conectiva

France’s Mandrakesoft plans to acquire Brazil’s largest Linux vendor, Conectiva, the companies said in a joint statement released Thursday. The two companies have entered into a definitive agreement that would see Mandrakesoft purchase the company in exchange for €1.79 million ($2.36 million) in stock.

With just over 3 percent of the worldwide Linux market, Mandrakesoft is the No. 4 Linux vendor, after Red Hat, Novell, and Turbolinux, according to research firm IDC.

IDC ranked Conectiva No. 6 worldwide in 2003, the last year for which data was available. The company employs 60 people in offices in Curitiba, São Paulo and Manaus, Brazil. Conectiva’s revenues totalled €1.7 million during its most recent fiscal year, the statement said.

The acquisition will strengthen Mandrakesoft’s international position and offer the company “greater opportunity for continued expansion,” said François Bancilhon, chief executive officer of Mandrakesoft, in the statement.

Mandrakesoft had revenues of €5.18 million and a net income of €1.39 million during its most recent fiscal year, the company said. This represents quite a turnaround for a company that three years ago was appealing directly to users for help paying the bills. Mandrakesoft entered into bankruptcy in 2003, and emerged in March 2004.

Neither Mandrakesoft nor Conectiva were available for comment on this story.