Motorola buys Lineo stake for embedded Linux

The investment purchase, which is expected to equal 3 million shares of Lineo, will be carried out through Motorola's subsidiary, Metrowerks, the companies said in a statement. Additionally, Lineo will also sell 2 million warrants to be converted into common shares, Motorola and Lineo said.

The partnership is expected to produce joint products and services from Lineo, Motorola and Metrowerks. Lineo and Metrowerks plan to jointly integrate Lineo's embedded Linux solution with Metrowerks' CodeWarrior IDE (Integrated Development Environment) product, Motorola and Lineo said.

Called CodeWarrior for Embedix, the product is intended to provide Linux developers with a single package for creating the next generation of embedded products, the companies said.