Turbolinux, a Linux-based software and services provider, and Linuxcare, a provider of Linux-based services and support, said they reached a definitive agreement for Turbolinux to acquire Linuxcare in an all stock transaction of undisclosed value. The companies, which have a two year working partnership, expect the acquisition to be finalized within the next 45 days. Turbolinux also said it is withdrawing its S-1 registration for an initial public offering, filed with the SEC in October 2000.

The two companies will be combined under the name of Turbolinux and will continue to operate in Turbolinux's Brisbane, Calif. office and Linuxcare's San Francisco office. Linuxcare's co-founder and CEO Arthur F. Tyde III will become the CTO at Turbolinux.

Linuxcare had received $67 million in three rounds of funding from Kleiner Perkins Caufield & Byers, ITOCHU, Motorola, Oracle, and Sun. Turbolinux has raised over $95 million in financing from August Capital, BEA Systems, Compaq, Dell, Deutsche Banc, Fujitsu, Hambrecht & Quist Asia Pacific, Hitachi, IBM, Intel, NEC, Novell, Oracle, SGI, and Toshiba, among others. Deutsche Banc Alex. Brown advised Turbolinux during the acquisition.

 
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