Cobalt Networks Inc., a developer of server appliances, said today it plans to acquire privately held ChiliSoft Inc., a provider of Web application-development software, in an all-stock agreement valued at $75 million.
ChiliSoft technology allows Web applications, developed with Microsoft tools, to be deployed on any platform, including Linux. "This is the linchpin of the deal: ChiliSoft opens the Microsoft developer community to the Linux market," says Stephen DeWitt, Cobalt's president and CEO.
The ChiliSoft Active Server Platform technology will be integrated to Cobalt's RaQ platform line. The product line with ChiliSoft technology is available immediately; pricing begins $2,849.
There was little reaction to the news on Wall Street: Cobalt (COBT--Nasdaq) stock rose 3/16, or 0.30%, to close at 60-15/16.