Specialist Linux consultancy Babel Com Australia has purchased Everything Linux.
David Elson, managing director at Babel Com, told CRN he had been in negotiations with Everything Linux's founder Anthony Rumble for the past 12 months.
"Anthony was no longer in a position to continue the retail outlet and was winding down the business," he said.
"We've picked up the remnants of the business and have turned it into an outlet for Linux.
"This includes notebooks (with Linux preinstalled), netbooks, hardware, books, certifications, CDs/DVDs on Linux, but also looking at Red Hat."
Elson said it was difficult in Australia to get notebooks to come with pre-installed Linux and users had to pay a Microsoft licensing fee for software they don't use.
The Linux community needs a shop front, he said. The open source market was still niche but continually growing.
Government departments like the RTA, State Revenue, Premiers Department and State Rail were moving towards a Linux backend and moving away from high software licensing fees, said Elson.
"The Judicial Commission, a government agency, has moved its entire backend to Linux. Corporations are also following suit especially in these financial times."
He said Babel will be looking to hire staff for the shop, as Rumble operated the business mostly by himself with the help of temporary employees.
"We aren't taking any staff because he didn't have continuing employees. However, Grant Parnell, Anthony's business associate, has been assisting Babel with the sale of Everything Linux," said Elson.
"He has been hired as a consultant and will also be involved with the set-up and relocation to Crows Nest in Sydney, NSW.
"The ELX [shop] will open its doors in the next few months."
Elson said Babel also intends to further establish its mail order business, focusing entirely on Linux solutions and Linux related products.
"I'm interested in increasing the volume of the business, but will not expand to sell Microsoft or commercial UNIX products," he said.