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28 February, 2005
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Mandrakesoft To Acquire Conectiva

Overview of the Mandrake-Conectiva Acquisition

Mike Angelo -- 28 February 2005 (C) -- Page 2

Article Index
To learn why Linux is so much a better choice than is Microsoft Windows, please see our article Gaël Duval Tells Why Mandrake Linux Is Better Than MS Windows

To learn how to run MS Windows-based software and accessories in GNU-Linux, please see our article Crossover Office 2.1 Runs MS Windows Software on GNU-Linux Systems

Mandrake-Conectiva Demographics and Financials

Conectiva's primary market area is South America. Mandrake's primary markets are Europe and North America, each accounting for about 40% of Mandrakesoft's business. Thus, rather than merging overlapping businesses in the same geographical market area, the Conectiva acquisition will result in a combined company with three major geographical markets, Europe, North America, and South America.

At the 24 February press conference, this writer asked: You are really not overlapping. Basically, you are taking two companies that are serving different areas, is that correct?

François Bancilhon replied: That is correct. There is full geographical complementarity.

Conectiva was founded in 1995. It employs 60 people and has offices in Curitiba, São Paulo and Manaus, Brazil. Conectiva had revenues of $2.2-million US ($1.7-million EUR) in its latest fiscal year.

Mandrakesoft was founded in 1998. It employs 65-70 people and has offices in the United States and France. In its latest fiscal year, Mandrakesoft revenues reached $6.7-million US ($5.18-million EUR) yielding a net income of $1.8-million US ($1.39-million EUR). Mandrake says it has a user base of 4-million users.

Adding the gross revenues of both companies together, using simple math, would make Mandrakesoft's anticipated, annual gross revenues around $8.9-million US -- after completion of the Conectiva acquisition. Of course that could change substantially as Mandrake-Conectiva starts to market the Mandrake-Conectiva products that will replace the current, individual products of the before-acquisition companies.

François Bancilhon sees Mandrake-Conectiva in the top tier of Linux distribution providers. And he sees Mandrake-Conectiva as a key player in the Linux community.

MozillaQuest Magazine: . . . now you have got Red Hat as sort of one big player in the Linux Market. You have got the Novell-SUSE complex as another one . . . Does this . . . make you the third biggest player or maybe even second or first?

François Bancilhon: Our objective is to be ... the key player, obviously. So this new combination makes us much stronger and we are going to be growing aggressively. Both internally and through external growth . . . We have zero interest in being a second tier player but we absolutely want to be a first tier player.

MozillaQuest Magazine: . . . Let's say for the sake of argument that the first tier is the Mandrake-Conectiva thing, Red Hat, and then the [Novell-]SUSE Linux thing as the three top tier players - - -

François Bancilhon:- - - Absolutely . . . We are competing in the top tier and we want to win in the top tier.

MozillaQuest Magazine: Is there anybody else you would say is in that top tier, or do you think it is just the three of you?

François Bancilhon: . . . If you look who are the commercial players who have a world-wide presence this is it so . . . At this stage there are three global players and we [Mandrake-Conectiva, Novell-SUSE, and Red Hat] are it.

Please stay tuned for more about Mandrakesoft's acquisition of Conectiva.

[Editor's Note: We transcribed the quotes included in this article from the 24 February telephone press conference. There could be errors in our transcription. Additionally, we made a few minor grammatical and style changes in the quotes for better readability.]

Article Index


  • The definitive computer hardware book:

Upgrading and Repairing PCs, 16th Edition, Scott Mueller, Que, ISBN: 0789731738. $60

  • Some Interesting Linux Books

Acing the LINUX+ Certification Exam, Patrick Regan, Pearson Prentice Hall, ISBN: 0131121553. $88

Beginning Linux Programming, 3rd Edition, Matthew and Stones, (Foreword by Alan Cox), Wiley. ISBN: 0-7645-4497-7. $40

Novell Certified Linux Engineer (Novell CLE) Study Guide, Robb Tracy, Novell Press, ISBN: 0789732033. $60

Fedora 3 Unleashed, Bill Ball and Hoyt Duff, Sams, ISBN: 0672327082. $50.

Fedora Linux 2 Bible, Christopher Negus, Wiley, ISBN: 0-7645-5745-9. $50

Linux For Dummies, 5th Edition, Dee-Ann LeBlanc, Wiley, ISBN: 0-7645-4310-5. $30

Linux in a Nuthsell, 4th Ed., Siever, Figgins, and Weber, O'Reilly, ISBN: 0-596-00482-6. $40

Linux Kernel Development, 2nd Ed., Robert Love, Novell Press., ISBN: 0672327201. $45

Linux Network Architecture, By Wehrle, Pahlke, Ritter, Muller, and Bechler, Pearson Prentice Hall, ISBN: 0131777203. $50

Linux Programming by Example: The Fundamentals, Arnold Robbins, , Prentice Hall PTR, ISBN: 0131429647. $40

The Linux Process Manager: The internals of scheduling, interrupts and signals, By John O'Gorman, Wiley, ISBN: 0-470-84771-9. $35

Linux Toys, Christopher Negus and Chuck Wolber, Wiley, ISBN: 0-7645-2508-5. $30

Linux Troubleshooting Bible, Christopher Negus, Thomas Weeks, Wiley, ISBN: 0-7645-6997-X. $30

Official Fedora Companion, Nick Petreley, Wiley, ISBN: 0-7645-5836-6. $20

Operating Systems, 3rd Edition, Deitel, Deitel, and David, Pearson Prentice Hall, ISBN: 0131828274. $103

Principles of Network and System Administration, 2nd Edition, Mark Burgess, Wiley, ISBN: 0-470-86807-4. $50

Running Linux, 4th Ed., Welsh, Dalheimer, Dawson, and Kaufman, O'Reilly, ISBN, 0-596-00272-6. $45

Understanding the Linux Kernel, 2nd Edition, Daniel P. Bovet and Marco Cesati, O'Reilly, ISBN: 0-596-00213-0. $50

Understanding the Linux Virtual Memory Manager, Mel Gorman, Prentice Hall PTR, ISBN: 0131453483. $60

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