Announces Strategic Licensing Agreement with Corel Corporation
deal and $10 million commitment from Linux Global Partners to
form backbone of Xandros' go to market strategy.
29, 2001 - San Francisco, CA - Xandros Corporation today announced
that it has signed a strategic licensing agreement with Corel
Corporation, giving it access to Corel's Linux desktop OS and
related technologies. The newly formed company will focus on developing
the desktop and server markets with assistance from its founding
parent, Linux Global Partners.
has secured a $10 million capital commitment from NY-based Linux
Global Partners, a Linux-specific investment company with financial
holdings in several key desktop application companies. The new
company will be headquartered in Ottawa, Canada and has already
retained a majority of the original software architects of the
award-winning Corel Linux operating system.
combines the best of open source technologies with a corporate
attention to completeness, usability, and support to benefit the
end user," said Michael A. Bego, president of Xandros. "We
believe Xandros has all the elements necessary to deliver an outstanding
desktop experience to customers," Bego added.
explained that the resulting combination of technology and usability
would provide an easy-to-install and easy-to-use solution. This
positions Xandros as a viable alternative to the Windows operating
system and also marks the first end-to-end Linux desktop that
will better meet the needs of its current users as well as potential
Xandros distribution is scheduled for release in the coming months
and retail for a fraction of the cost of the comparable Windows
OS and applications. Bego said that the software will ship with
a full suite of productivity tools, ISP providers, and the variety
of drivers, and applications that users need and expect. In addition,
Xandros officials see great promise in that the applications contained
within the Linux Global Partners' portfolio companies currently
ship with 62 percent of the Linux computers sold today and have
significant recognition with users.
the past three years, before Linux was a common name, we were
identifying and financially supporting the leading Linux desktop
application companies in development," said Wm. J. Roseman,
co-chairman of Linux Global Partners. "We are now working
to incorporate our portfolio companies into the Xandros OS which
will provide a complete desktop application for Linux."
announcement represents the start of a new chapter for Corel's
Linux desktop and fulfills a promise Corel made earlier this year
when we announced our intention to spin off the Linux distribution
component of our business," said Rene Schmidt, chief technology
officer at Corel Corporation. " We are pleased to entrust
this technology to a company which is fully dedicated to delivering
an end-to-end solution to customers.
believe this decision is in the best interests of customers and
shareholders since it allows Xandros to carry the technology forward
and, in turn, allows Corel to maintain its singular focus on an
aggressive new growth strategy announced in January of this year."
the terms of the deal, Corel will receive an undisclosed amount
of cash along with a 5 percent equity stake in Xandros and a 2
percent equity stake in Linux Global Partners. Xandros will have
unlimited rights of use to the Corel Linux desktop OS and related
technologies for a period of eighteen months.
is creating a desktop solution that will combine the best of open
source technologies with a corporate attention to completeness,
usability, and support. It is based on v3.0 of the award-winning
Corel Linux OS and represents the next step in the evolution of
the desktop. Furthermore, Xandros will be unveiling server and
enterprise management solutions in 2002.
in Ottawa, the Xandros team includes the world-renowned developers
and architects of the award-winning Corel Linux OS. The first
release of Xandros' desktop will come in early 2002. Xandros is
inheriting a sizeable user base from Corel Linux OS from which
it plans on significantly expanding its market presence. Xandros
is currently developing its direct and indirect distribution channels
for corporate, government, home, and educational users worldwide.