Merger between EBIZ Enterprises and Linux NetworXSalt Lake City 22 March 2001 As part of a planned merger, EBIZ Enterprises Incorporated and Linux NetworX, Inc. have signed a letter of intent operating agreement to allow EBIZ to manufacture Linux NetworX cluster compute nodes in its Houston, Texas Technology Center. This initial step between the two companies ensures a smooth transition when the merger is complete. The merger is expected to finalize during the second quarter 2001.
"This merger with Linux NetworX will benefit EBIZ customers and shareholders as
we grow markets and move into the high performance computing space," said Dave
Shaw, CEO of EBIZ. "The high performance computing market is growing at a rapid
rate. IDC estimates that the high performance computing market has grown from
$4.8 billion in 1998 to $5.8 billion in 2000 and that it will grow to $7.5
billion by 2003."
Clustering, the technology Linux NetworX brings to the merger, is also being
adopted into the server markets, which are estimated by IDC to be in excess of
$60 billion. Through its recently announced Terian and ezNET server appliances,
EBIZ is already pursuing the server markets. The merger helps to advance these
strategies for both companies.
The Linux NetworX intellectual property of cluster management tools, combined
with its enormous success with enterprise, government and Fortune 500 customers,
opens up new lucrative markets for EBIZ.
Linux NetworX, a provider of powerful, easy-to-manage Linux clustering solutions
for research, industry, government and other technological fields, carries an
impressive customer list, including The Boeing Company, Lockheed Martin,
Lawrence Berkeley National Laboratory, Baylor College of Medicine and Rockwell
Science Center, to name a few.
EBIZ, a manufacturer of specialized appliance servers and the leading
vendor-neutral provider of Open Source products and solutions, announced its
plans to merge with Linux NetworX last week. Upon completion of the merger, EBIZ
will extend its market reach by working with Linux NetworX to deliver turnkey
clustering solutions.
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