Why Novell is worth $2.2 billion to Attachmate

22.11.2010
Novell has long since lost its position as a dominant vendor in the operating system market, but the vendor's long, slow decline didn't change the fact that Novell still has some valuable technologies.

The value still inherent in Novell was, to some extent, reaffirmed Monday by a definitive in which Attachmate  is expected to purchase Novell for $2.2 billion.

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Why is still worth that much? Despite the decline of , Novell has SUSE Linux, one of the most popular commercial distributions of the open source operating system.

Novell's SUSE Linux business reportedly , which seemed to be interested in purchasing this portion of Novell. But in the end all of Novell, with the exception of $450 million worth of intellectual property assets purchased by a Microsoft-organized consortium, went to Attachmate. A deal has seemed likely since at least March of this year, when Novell rejected a from Elliott Associates. 

"Probably the biggest plum here is the SUSE Linux assets," says Pund-IT analyst Charles King. "SUSE has run a fairly distant second to Red Hat, simply because I don't think Novell had the wherewithal to expand services around Linux. They were a bit over their heads there. With Attachmate being focused on enterprise modernization, cloud computing and so on, I can see where Linux could be a particularly valuable asset there."