European Linux company Mandrakesoft is to buy Latin American open source player Conectiva for $2.3m in stock.

Mandrakesoft said that the deal will "significantly" increase its size and research and development capabilities.

The combined company will benefit from shared development resources, commercial prospects and larger economies of scale, according to the pair, resulting in improved development potential for both companies.

"Combining the two businesses enables us to extend the scope of our offering and address more businesses by compounding development and commercial assets," said Mandrakesoft chief executive François Bancilhon.

Mandrakesoft claims a user base of more than four million users, with customers including Carrefour, France Telecom and Verizon.

Conectiva employs 60 people and has offices in Curitiba, São Paulo and Manaus, Brazil.