Tadpole Technology, the Cambridge, UK SPARC notebook maker, is buying Cycle Computer Corporation, a California maker of SPARC rackmounts for £5.6 million in shares.

The company is to raise £11.2 million through a one-for-11 rights issue and a placing of new shares at 45 pence a pop with existing customers.

Around £5 million will slosh into working capital for the company's bigger, better hardware division. The rest will go on R&D, and sales and marketing for the company's software division. This is working on peer-to-peer Web software products. ®