SOURCE: OpenLogic

March 15, 2010 07:10 ET

OpenLogic Announces Open Source Audit Service for Merger and Acquisition (M&A)

BROOMFIELD, CO--(Marketwire - March 15, 2010) -  OpenLogic, Inc., a provider of enterprise open source software support and solutions encompassing hundreds of open source packages, today announced a new M&A Open Source Audit Service for participants involved in merger and acquisitions that involve technology assets or products that may include open source software.

"Open source software continues to enable innovation in technology products," said Steve Grandchamp, CEO of OpenLogic. "As part of the normal due diligence process, companies need to fully understand what open source is used, and what the licenses and terms are. OpenLogic's M&A Open Source Audit goes a long way in providing all the information needed for full disclosure."

According to a US Technology M&A insights 2010 study by PricewaterhouseCoopers, total technology M&A closed deals in 2009 were valued at $36 billion. 85 percent of the value of the $36 billion in mergers and acquisitions came in the final six months of 2009 and analysts expect that upswing to continue in 2010.

"The focus on open source and other third-party software in M&A transactions has only increased in recent years. As the technology M&A market continues to return, it's critically important that both parties to the transaction understand what open source software is in use by the target company," said Jason Haislmaier, a partner at Holme Roberts & Owen LLP in Boulder, Colorado. "Sellers need to avoid providing buyers with any additional opportunities for leverage, while buyers need to minimize post-closing surprises. The only way to avoid open source software triggering either of these situations is to ensure that each use of open source a known and disclosed use -- and the only way to do this is through an open source scan."

The M&A Audit Service includes:

Audit for Open Source:
Using OpenLogic's Deep Scanning technology, OpenLogic provides a complete audit of all open source used in key technology assets or products that are part of the acquisition. OpenLogic provides a detailed report listing the open source projects; open source licenses and obligations; and any license conflicts.

Certification:
In addition to the Audit report, OpenLogic provides a summary report showing what steps have been taken by the company to comply with open source software license and copyrights.

Indemnification:
Based on the results of the audit and the certification, OpenLogic provides limited indemnification on the code tested.

About OpenLogic Deep Discovery:
OSS Deep Discovery, first announced in December 2009, is a scanning tool that scans source code as well as binaries to identify open source code and licenses -- even when the open source code has been copied or modified. OSS Deep Discovery is ideal for enterprises that distribute software or products containing software or are engaged in M&A activities.

OSS Deep Discovery enables companies to:

  • Quickly and easily scan products for open source code
  • Create a complete, accurate inventory of open source code and applicable licenses
  • Audit for compliance with internal policies
  • Understand license obligations and conflicts
  • Ensure compliance with open source licenses and avoid potential legal action
  • Protect a company's own intellectual property

About OpenLogic
OpenLogic is a leading provider of open source solutions that enable enterprises to safely acquire, support, and control open source software. OpenLogic provides enterprises with a certified library of open source software that encompasses hundreds of the most popular open source packages via OpenLogic Exchange (OLEX), a free web site where companies can find, research, and download certified, enterprise-ready open source packages on demand. With the broadest open source coverage in the industry, OpenLogic offers indemnification; updates; and enterprise-grade technical support backed by the OpenLogic Expert Community. OpenLogic also provides solutions for open source governance and to automate the integration and deployment of open source components -- reducing the risk and maximizing the cost savings associated with using open source software. For more on OpenLogic, go to www.openlogic.com.

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