This acquisition follows Novell's August purchase of Ximian, specialised in Linux server and desktop solutions. Both the Ximian and SUSE LINUX acquisitions affirm Novell's commitment to promoting the open source model and developer community.

Novell also announced that IBM intends to make a $50 million investment in Novell convertible preferred stock. In addition, Novell and IBM are negotiating extensions to the current commercial agreements between IBM and SUSE LINUX for the continued support of SUSE LINUX on IBM's eServer products and middleware products to provide for product and marketing support arrangements related to SUSE LINUX. Both of these agreements will be effective when the acquisition of SUSE LINUX by Novell is completed.

SUSE LINUX offers a range of Linux server and desktop solutions designed to meet the diversified needs of different organisations. SUSE LINUX Enterprise Server 8 for midsize to large companies provides a range of core networking services with the high-availability and scalability features needed for mission-critical environments.

SUSE LINUX is the leading enterprise Linux company in Europe. In addition, through its relationships with Conectiva and Turbolinux, SUSE LINUX has been a leader in Latin America and Asia, as well. SUSE LINUX is also one of the top providers of Linux to enterprises in the United States and North America. Novell's extensive global sales and channel programmes, proven and reliable technical support capabilities, as well as ongoing Novell and SUSE LINUX relationships with key partners like IBM, Oracle, SGI, Fujitsu-Siemens, Dell, Intel, AMD, SAP, HP and others, provide a powerful business network to promote more rapid Linux adoption around the globe.

Citigroup Global Markets Inc. acted as Novell's financial adviser to the transaction. Clifford Chance Punder served as Novell's legal counsel. Arma Partners acted as financial adviser to SUSE LINUX and its stockholders. Freshfields Bruckhaus Deringer served as legal counsel to SUSE LINUX and its stockholders. SUSE LINUX investors are e-Millennium 1, AdAstra Erste Beteiligungsgesellschaft mbH and APAX Partners & CO.