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Novell to spin off content networking unit

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CIOL Bureau
New Update

SAN FRANCISCO: Novell Inc. said on Friday it is spinning off its existing

caching and content networking division as a new company called Volera, and that

telecommunications equipment giant Nortel Networks Inc. and business consultancy

Accenture will take minority stakes.

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Provo, Utah-based Novell said the new company would sell products and

services that help accelerate the distribution of multimedia content, such as

video clips and music, on the Internet. The agreements calls for the three firms

to provide Volera with more than $80 million in cash and consulting services,

according to a statement.

Novell will retain a majority interest in Volera. It has no plans to sell

shares to the public, though an initial public offer in the long-term has

already been approved by Novell's board, according to the statement.

(C) Reuters Limited 2001.

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