Computer giant Novell Inc. has acquired Annatek Inc., Boulder, Colo., a developer of automated software distribution and management systems that centralize software distribution.

Novell will exchange $10 million cash for all outstanding shares of Annatek stock. Annatek has become part of Novell's NetWare Systems Group and will continue to operate from Boulder.Jan Newman, Novell general manager of the NetWare Systems Group, said, "Automated software distribution that dramatically reduces the cost of software management has become a mission-critical requirement for many Novell customers."

"Annatek has distinguished itself as the leader in delivering these services. Combined with development work already under way at Novell, we expect Annatek to accelerate our abilities to provide network managers with comprehensive software distribution," she said.

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Annatek's technology can significantly lower the cost of software installation and management. Industry analysts estimate that without this capability organizations spend up to $1,000 per desktop computer annually to update and maintain software.

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