The folks from the Linux side of the fence have the urge to merge, according to News.com. It seems that Mandrakesoft has decided to acquire Brazil-based Conectiva in a sizable stock purchase. While this will not likely mean much in the US, it will give Mandrakesoft a really nice reach into some new markets.

Mandrakesoft, based in Paris, will pay $2.3 million (1.79 million euros) in stock for Brazil-based Conectiva, the companies said Thursday. The consolidation will help give the combined company more heft, though Mandrakesoft co-founder Gael Duval has tempered his initial expectations.

“This won’t elevate us to the status of Red Hat or Novell/SuSE yet, of course, but this is a significant growth for us,” Duval said in an e-mail. Further growth plans include an expansion to woo small and medium-size businesses in the United States, he said.

More acquisitions are possible. “We need still more organic growth and external growth–more acquisitions,” Duval said.

In two months, the merged companies plan to announce what name they’ll use, Duval added.

Mandrakesoft and Conectiva are profitable, the companies said. Conectiva, with 60 employees, had revenue of $2.2 million in its most recent fiscal year and became profitable halfway through, the companies said. Mandrakesoft had revenue of $6.7 million and net income of $1.8 million for its most recent fiscal year.