Bangalore Correspondent

Novell to take full ownership of Indian subsidiary

news
Aug 25, 20051 min

Novell positioning itself to drive Linux and open-source adoption

Novell announced Thursday that it is acquiring the stake held by its partner in its Mumbai-based sales and distribution joint venture, Onward Novell Software (India).

By increasing its investment in India, Novell is well positioned to help drive Linux and open-source adoption not just in India, but in other emerging Asian markets as well, according to a statement Thursday from the Waltham, Massachusetts-based Linux and middleware software vendor.

Novell has operated in India since 1992 as Onward Novell Software, a 50/50 joint venture with a local Indian partner, Onward Network Technologies. However, Novell set up its software development center in Bangalore as a wholly owned subsidiary.

Like Novell, a number of other multinational technology companies including IBM set up joint ventures in India in the late 1980s and early 1990s, both to meet Indian government regulations, and because the Indian partner offered better access and knowledge of the local market. In most cases, the multinational company eventually acquired the entire operation.

Novell expects to close the transaction by the end of its fiscal year, the company said in a statement Thursday. Novell will integrate the Onward Novell organization with the company’s existing India operations.