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Published: 4 November 2003 13:55 GMT
Longtime Microsoft foe Novell has signed an agreement to acquire SuSE Linux for $210 million in cash, while IBM, the most powerful backer of the open-source operating system, will take a $50 million investment in Novell, the companies said Tuesday.
The move could boost the fortunes of SuSE, the number two seller of Linux, increase the competitive pressure on top dog Red Hat, and provides a new direction for Novell's ongoing rivalry with Microsoft.
The move is the second Linux acquisition for the Utah-based company, which bought desktop Linux software specialist Ximian in August.
Though Ximian gave Novell software for using Linux on desktop computers, SuSE is strongest with software for Linux on servers, the networked machines that handle chores such as hosting Web sites and routing email.
Stephen Shankland writes for News.com
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