In a move that has been rumored for months, Novell Tuesday announced that it has entered into an agreement to acquire SuSE Linux AG, a leading supplier of the open source Linux operating system to enterprise customers.

Novell has agreed to pay $210 million in cash for SuSE, which is located in Nuremberg, Germany, Novell said in a statement.

The move is subject to regulatory approval and the winding up of shareholder agreements, according to the statement.

This move follows Novell's August purchase of Ximian, a provider of Linux server and desktop software.

Novell also announced that IBM plans to make a $50 million investment in Novell convertible preferred stock. In addition, both companies are negotiating extensions to the current commercial agreements between IBM and SuSE for the continued support of SuSE Linux on IBM's eServer products and middleware products.

Last week in an interview, Richard Seibt, CEO of SuSE, refused to confirm rumors of a possible takeover by Novell, saying only that "there are lots of rumors out there, and there will be many more. We're doing well, and that attracts attention."

The IDG News Service is a Network World affiliate.