Mandriva

History

1998: Linux enthusiasts create Mandrakesoft company

The Mandrakesoft company was founded in 1998 by three young people of Linux enthusiasts: Jacques Le Marois, Gaël Duval and Frederic Bastok. Implementation of GNU/Linux in the masses, its maximum convenience to unprepared users was a main goal of the company.

Mandriva was known as one of the simplest Linux distribution kits positioning itself as the best distribution kit for beginning users. The product appeared in the market in 1999 under the name Mandrake, was translated into 80 languages, including Russian, exists in several – free and paid – modifications. Besides, Mandriva proposes solutions for corporate clients which, however, do not enjoy considerable popularity. The company had offices in France, the USA and Brazil, in its state 70 people work.

• Mandriva Linux, open operating system suitable for both individual users, and companies,
• Mandriva Directory Server, simple management tool in use by access to directories (LDAP),
• Linbox Rescue Server, the software package providing all functions of proper local or remote control the IT system.

2003: Debt restructuring

In 2000 — 2002 the company made several strategic mistakes which nearly resulted in bankruptcy of firm.

In 2003 Mandriva submitted the application for bankruptcy, but could agree as a result with creditors about payment of $5 million within 9 years.

2005: Purchase of developer Linux Conectiva and Lycoris. Renaming into Mandriva

On February 24, 2005 the Mandrakesoft company purchased the Brazilian developer Linux Conectiva and replaced the name with Mandriva. One of the reasons of change of the name — prolonged judicial proceedings with the Hearst Corporation which is the owner of the rights to the popular character of comics Mandrake the Magician. On June 15, 2005 Mandriva absorbs one more distributor of Linux the American company Lycoris.

And on March 15, 2006 there was an event which caused large scandal in Linux community — Gael Duval, the co-founder of the company and the coordinator of community, was dismissed together with 18 more employees, and was even deprived of the life membership in Mandriva Club. The position of the company was proved by the fact that "Duval's team became non-profitable recently". Mr. Duval commented on the resignation so: "It is hard. You create the project and give work for dozen of people, and in seven years the current company executive says to you that she came it is time to leave". At present Gael Duval develops the Ulteo distribution kit.

2007: Entry into the market of Russia

On May 28, 2007 Mandriva officially entered the Russian market, having opened "The development center of Mandriva" in St. Petersburg. Also the Russian-speaking official site of www.mandriva.ru company was started

Later the Russian company Mandriva Russia which is engaged in localization and distribution of the open source in the territory of the country was registered. The mission of Mandriva Russia company according to information on the official site - development for Russia and the CIS countries of the open and freely distributed world-class operating system together with the best programmers of France and Brazil. Also Mandriva Russia conducts training courses on Mandriva Linux, support of systems and their implementation.

2008

Mandriva revenue in the third quarter made 2008 €1.04 million, an operating loss — €0.64 million.

Last time the company published the annual financial results for 2007. Having earned then 5.78 million euros, Mandriva received an operating loss in the amount of 2.46 million euros and net loss in the amount of 5.1 million euros.

Capitalization of the company at the Parisian exchange NYSE Euronext for July 6, 2010 made $ euros 1.543 million, for a year of quotation of its actions fell more than twice - from 0.21 euros to 0.1 euros.

2010

Losses

Cumulative losses as of December 31, 2009 were 8.156 million euros. With respect thereto in September, 2010 capital reduction of the company by reduction in cost of actions from 30 Euro cents to 1 Euro cent according to the results of which total authorized capital of Mandriva will be 154.36 thousand euros (now – 4.63 million euros) is planned. It will allow to reduce cumulative losses of the company to 3.68 million euros.

In an interview to the French edition Channel News Jean-Noël de Galzen was recognized that to display Mandriva to financial wellbeing will be difficult:

"We will create value added and to develop new activities, but it will not be easy. The free software is connected with the peculiar culture and philosophy assuming openness concerning the values created in the course of work or relationship between people – such culture and philosophy will very far be spaced from accepted in a world of commerce. It is necessary to find golden mean between Open Source and requirements of the commercial market", – the president of Wallix summarizes.

The insolvency of Mandriva became the reason of leaving the company of developers.

"Mandriva loses talented people, - the chief executive of the company Arnaud Laprévote wrote at a corporate forum. - We invite in new developers in our team. Possibly, they are not so talented, but in any case they will work with pleasure here".

The fund from Russia redeems NGI 5% in the company

As CNews knew on July 6, 2010, 5% in Mandriva company were purchased by investment fund with the Russian roots NGI. Behind the transaction there was the former Minister of Communications Leonid Reiman who intends to create the Russian operating system on the basis of Mandriva.

The Adviser to the President of the Russian Federation and the former Minister of Communications Leonid Reiman acted as the curator of the transaction.

"I advise participants of the transaction on the organizational and methodical moments of implementation of the open source (OS) in Russia as this subject is well familiar to me" — mister Reiman confirmed on July 7, 2010 to Kommersant. "The problem of implementation of the open source in Russia is very relevant. Especially it is important in conditions when the project with implementation of Open Source at schools which last year received the rejected disks from the contractor under the public contract was actually failed" — Leonid Reiman says.

NGI purchases control over Mandriva

In September, 2010 it became known that NGI purchases control over Mandriva. The source close to one of the parties of the transaction^[1] reported about it^[1]. According to documents on the website Mandriva, its shareholder meeting which should make the decision on reduction of authorized capital and an additional issue and convertible bonds for benefit of Townarea Trading and Investments ltd will take place on September 17. For the forthcoming one and a half years the company is going to attract additional investments for total amount to 2.4 million euros. From them 1 million euros will be received from Cyprus company of Townarea Trading and Investments Limited which will be able to perform investments one-time or in several tranches for the forthcoming 18 months. The Townarea company belongs to NGI, Akopyan told Vedomosti.

The fund is going to invest in the company about 2 million euros then a part of an additional issue will be distributed between two other shareholders of Mandriva — the French Occam and the American Millenium, tells a source. Shares of other shareholders will not be redeemed, he emphasizes. NGI does not aim at accumulation "more than a controlling stake", Akopyan specified.

At the beginning of 2011 the Ministry of Telecom and Mass Communications is going to announce competition on development of the national operating system on Linux. Now Mandriva intends to participate in it along with Russian Technologies which redeemed recently ALTLinux.

It is supposed that shareholder meeting will approve on September 17, 2010 candidacies of new board members:

• Bertrand Glineur,
• former CIO of Crédit Foncier de France company, Jean-Noël de Galzain,
• president of IF Research and Wallix companies and
• vice president of the French pole of competence System@tic,
• Arnaud Laprevot holding a post of the CEO of the company since March, 2010 and
• Dmitry Komissarov, CEO of PingWin Software (IT group).

Restructuring

In the documents published before a general meeting of the company on September 17, 2010 the forthcoming significant changes are mentioned in structure of Mandriva. In particular, in connection with unprofitability the division of Edge IT will be liquidated. At the same time it became known that the Brazilian division of the company, Conectiva, is under the procedure of protection against creditors now.

Edge-IT reduction – the bad sign. The participant of Association of French-speaking users of Mandriva Frederik Kyuif (Frédéric Cuif) writes that "Edge-IT was Mandriva heart as most of "employees of Mandriva" actually were to the staff of Edge-IT. And today it became known that the person fifteen employees of this company will be dismissed for reasons of economic character".

Reaction of representatives of community of users of Mandriva to the latest events is very disturbing. Community does not exclude that the Linux Mandriva distribution kit as it stands will cease to exist: "It is about two markets: server and OEM for education", – Olivier Mejean, the president of Association of French-speaking users of Mandriva notes. – "As far as I understand the current situation, there is no guarantee that the current actions will provide existence of a distribution kit for the mass user. Wallix (whose president will join the board of Mandriva - a comment of CNews) will take itself a server part to integrate it with own offers (I think, in particular, of the server MDS tools and of Pulse), and OEM for education will go to Russia together with the Mandriva trademark". At the same time Olivier Mejean connects Townarea Trading with Russia, paying attention that Cyprus was known as "a starting point for the Russian investors" also earlier.

2015: Insolvency proceeding start

On May 27, 2015 it became known of the beginning of liquidation of Mandriva company. Revenue of the company in 2013 made €553 thousand, it insufficiently for continuation of operating activities in 2015^[2].

In 2010 the controlling stake of Mandriva was acquired by NGI fund. The main shareholder of fund - the former Minister of Communications Leonid Reiman. In 2010 Reiman had interests in the field of the open source (OS). He created ROSA company, the developer of the Russian Linux distribution kit of the same name. Besides, NGI purchased at IT system integrator of the distributor of Pingwin Software Open Source products.

During creation of ROSA developments of Mandriva were used. It caused discontent of the second in value shareholder of Mandriva - the Occam fund operating under control of the French bank Bryan Garnier. The French co-owner blocked additional issue of shares of Mandriva while the companies were required additional resources for continuation of operating activities. Besides, a part of developers left Mandriva and created a branch of new Linux distribution kit - Magea.

At the beginning of 2012 Mandriva threatened with the beginning of insolvency proceeding. Then the company was saved: Bryan Garnier agreed to carrying out additional issue of shares of the company in the amount of €4 million which was completely redeemed by NGI. In 2012 Mandriva assigned the rights to the developments in non-profit community Open Mandriva.

According to information in media, liquidation of Mandriva happens according to the plan: the main capacities for development are a few years ago transferred to Dew, for promotion at the international level the Open Mandriva project - closing of the legal entity in France - the formal procedure is created.

Now development and a distribution kit STC IT of ROSA promotes.

Membership in the organizations

Mandriva is a member of Linux Consortium — the organization trying to develop uniform standards for all GNU/Linux distribution kits.

Notes