CollabNet buys tools software from SourceForge.net

CollabNet said on Tuesday that it has acquired code management software SourceForge Enterprise Edition from VA Software for an undisclosed amount.

VA Software will continue to own and operate the SourceForge.net Web site which hosts thousands of open-source projects. In exchange for selling its source code management software, VA Software will get an equity stake in CollabNet.

CollabNet offers a hosted service for collaborative software development based on software that's similar to SourceForge Enterprise Edition. But the majority companies who use Sourceforge software have an on-site installation, said CollabNet CEO Bill Portelli.

This summer, the combined companies plan to create a roadmap to merge both products, a task which should be done in late 2008 or 2009, said Portelli. CollabNet will also offer its hardware provisioning tool and open-source source code management tool Subversion to SourceForge Enterprise Edition customers.

The acquisition was done to add revenue and cash flow, he said. In addition, CollabNet and is now able to advertise and seek leads on Sourceforge.net, whereas before they were viewed as a competitor, he said.

Although there is product overlap, CollabNet will go from about 100 to 300 customers through the acquisition.

"I think it's a good deal for both," said the 451 Group analyst Raven Zachary. "VA Software can focus more on its media business, and CollabNet picks up the existing SourceForge Enterprise customers."

--with additional reporting by CNET News.com's Stephen Shankland.