Andover, Massachusetts-based FTP Software Inc, is buying British- born Firefox Communications Inc, now of San Jose, in a one-for- one share exchange valued at $80m to $100m (CI No 2,833). It says the buy will enable it to achieve its aim of addressing the need for local network server-based products with particular emphasis on the NetWare market. The companies also plan to develop products in the areas of communications groupware, collaborative applications and messaging systems. The deal follows an agreement between the two companies last November for joint development and marketing of internetworking offerings. FTP and Firefox say the acquisition will give them the most complete suite of desktop and departmental IP offerings available, bringing together Firefox’s server-centric TCP/IP product range for the Novell Inc NetWare market and FTP Software’s desktop IP application suites. FTP Software client applications will also be able to take advantage of Firefox’s server-based access control and firewall technology. The companies claim there is a major opportunity for an organization that can address the full range of TCP/IP applications and networks on a global basis. According to FTP, Firefox’s strength in the European marketplace was an important incentive in the acquisition. After the acquisition, Firefox will be a business unit within FTP Software, primarily responsible for the combined firm’s server offerings. The sales, marketing and support operations of FTP Software and Firefox will be combined. In the near term, there is expected to be no change in the current FTP Software and Firefox channel strategies. Following the acquisition, John Kimberley, cuurently chairman and chief executive of Firefox, will join the board of directors of FTP Software and will serve as vice-chairman of FTP Software and executive vice- president of the Firefox Business Unit, reporting to David Zirkle. Peter Sim kin, presently chief technical officer of Firefox, is to become chief technical officer of FTP Software.
