HP makes major Linux buy

Computing giant HP has agreed to purchase a Linux operating system from software developer Phoenix Technologies.

Phoenix said that it would be handing over its HyperSpace platform to HP for US$12 million. The package will include the HyperSpace quick-boot operating system as well as virtualisation tools for the OS.

"We are very pleased that HP has agreed to acquire these assets relating to Phoenix's HyperSpace, given HP's rich history of innovation and product differentiation," said Phoenix president and chief executive Tom Lacey.

The deal bears resemblance to another recent purchase by HP, if not in price. In April the company shelled out US$1.5bn to acquire embattled handset maker Palm. HP said that the main reason for the deal was gaining control of Palm's webOS smartphone platform.

For Phoenix, the deal is part of an ongoing business transition. For several months the company has been selling off assets in an effort to narrow its focus to the core system software (BIOS) market.