ProductsDesktop Server For Scientific Computing For IBM POWER For IBM System z For SAP Business Applications Red Hat Network Satellite ManagementExtended Update Support High Availability High Performance Network Load Balancer Resilient Storage Scalable File System Smart Management Extended Lifecycle SupportDeveloper Studio Portfolio Edition Web Framework Kit Application Platform Web Server Data Grid Portal Platform Red Hat JBoss A-MQ Red Hat JBoss Fuse SOA Platform Business Rules Management System (BRMS) Data Services Platform Messaging JBoss Operations Network JBoss Community or JBoss enterprise
SolutionsApplication development Business process management Enterprise application integration Interoperability Operational efficiency Security VirtualizationSolaris to Red Hat Enterprise Linux Migration overview Migrate from your UNIX platform How to migrate to Red Hat Enterprise Linux Upgrade to the latest Red Hat Enterprise Linux release JBoss Enterprise Middleware Benefits of migrating to Red Hat Enterprise Linux Migration services Start a conversation with Red Hat
TrainingPopular and new courses Red Hat JBoss Administration curriculum Core System Administration curriculum JBoss Middleware Development curriculum Advanced System Administration curriculum Linux Development curriculum Cloud Computing, Virtualization, and Storage curriculum
ConsultingBusiness Process Management Cloud and Virtualization Custom Software Development Enterprise Data and Storage Systems Management Migrations
Red Hat Completes C2Net Aquisition for Approximately $42.7 Million
Research Triangle ParkUnited States, September 13, 2000
Strengthens Offering of Internet Infrastructure Solutions with Added Security
Red Hat, Inc. (NASDAQ: RHAT), the leader in open source Internet infrastructure solutions, completed the acquisition of privately-held C2Net Software, Inc., the developer of the popular Apache-based StrongholdÂ® secure web server. C2Net's Stronghold, which is available for many operating system platforms, is the most popular commercial SSL Web server on the Internet with more than 30 percent of the secure web server market.
The transaction was valued at approximately $42.7 million based on an average closing price of Red Hat's common shares for a seven-day period ended August 16, 2000. Under the terms of the transaction, Red Hat issued 1,992,877 shares of Red Hat common stock in exchange for all of the outstanding securities of Oakland, California-based C2Net. The acquisition has been accounted for as a purchase.
Red Hat continues to broaden its product offerings to provide a single source of complete Internet infrastructure solutions for its enterprise customers. C2Net is the fifth major acquisition for Red Hat in 2000 following the acquisition of: (1) WireSpeed, a leading developer of network and telecommunications software that helps connect a new generation of post-PC and embedded devices to the Internet and secure Web servers like Stronghold; (2) Bluecurve, whose performance management solutions allow organizations to simulate and measure user activity and demands placed on the Internet infrastructure and applications; (3) Hell's Kitchen Systems, Inc. (HKS), a provider of e-commerce payment processing software critical for any company trying to conduct business on the Web; and, (4) Cygnus Solutions, a top provider of a wide variety of software, tools, services and developer support for servers, real-time operating systems (RTOS) and embedded, post-PC platforms.
C2Net is the global provider of Stronghold secure web server software. Stronghold is available for more than 30 platforms, including several versions of Linux and most other common UNIX platforms.
As the first commercial server to support SSL and make its source code available to the development community, C2Net's Stronghold server has been leading the creation and adoption of security standards and protocols in Web-based computing for years. Stronghold was the first SSL Web server to support: 128-bit encryption, HTTP/1.1, SSL client certificates and hardware crypto acceleration. Stronghold 3, the latest version of C2Net's solution, includes administration tools for easy installation, powerful server-side scripting and unlimited virtual hosting on one license.
C2Net's customers include a blue-chip roster of leading Internet e-commerce businesses including Amazon.com, Ameritrade, EarthLink/Mindspring/Netcom, IBM, Lucent Technologies, Morgan Stanley Dean Witter Online, Network Solutions, USA.net, US Department of Energy, US Federal Courts, and Verio, Inc.
C2Net was founded in 1994 and has offices in Oakland, California and Newbury, England. The Company's revenues increased 46 percent in 1999 to $3.25 million. Additional information and free evaluation copies of Stronghold are available at http://www.c2.net/.
About Red Hat, Inc.
Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.comThere is no default locale or translation available for this content.
Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.
LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.