[LI] Red Hat to Acquire Cygnus

[Sachin Garg <sachin@xxxxxxxxxxxxxx>]

     Red Hat to Acquire Cygnus

     November 15, 1999 -- Red Hat, Inc. (www.redhat.com), makers
     of the Red Hat Linux OS, and open source software tools vendor
     Cygnus Solutions (www.cygnus.com) announced that they have
     signed a definitive merger agreement, whereby Red Hat will
     acquire Cygnus in a transaction valued at $674 million based on
     Red Hat's Friday, November 12 closing price. Red Hat expects the
     merger to close by January 27, 2000. 

     The transaction will be completed in a stock-for-stock merger in
     which Red Hat will issue up to 6,624,344 shares for all of the
     outstanding securities of Cygnus. The transaction will be
     accounted for under the pooling of interests method. The
     transaction is subject to approval by Cygnus' shareholders, the
     expiration of the waiting period under the Hart-Scott-Rodino
     Antitrust Improvements Act, and other customary closing
     conditions. The new company will be known as Red Hat, Inc. and
     remain headquartered in Research Triangle Park, NC. They do not
     expect to close any of their current offices, including the current
     Cygnus headquarters in Sunnyvale, CA. Matthew Szulik, the
     president of Red Hat, will lead the combined companies as
     president and CEO. Current Red Hat CEO Bob Young will become
     chairman of the new company. 

     Spokespeople at Red Hat expect this merger will support the
     rapidly growing adoption of Red Hat Linux and open source
     solutions in enterprise and Internet applications. The acquisition
     of Cygnus will make Red Hat the largest company in their field of
     providing open source technology, information, and services. 

--------------------------------------------------------------------
The Linux India Mailing List Archives are now available.  Please search
the archive at http://lists.linux-india.org/ before posting your question
to avoid repetition and save bandwidth.