Red Hat will continue to operate as a distinct business unit
IBM has completed the acquisition of open source specialist Red Hat, for a reported $34 billion, according to a company announcement.
IBM will acquire all of Red Hat’s shares, for a cash price of $190.00 per share.
The acquisition will allow IBM to consolidate its position as a leading hybrid cloud provider, while allowing Red Hat to scale up its open source innovations, making them available to a wider range of clients.
"Joining forces with IBM gives Red Hat the opportunity to bring more open source innovation to an even broader range of organizations and will enable us to scale to meet the need for hybrid cloud solutions that deliver true choice and agility," Jim Whitehurst, president and CEO of Red Hat.
Whitehurst will continue in his role as CEO and president of Red Hat. He will also join IBM’s senior management team, reporting directly to Ginni Rometty. Red Hat will continue to operate as a distinct business unit from the IBM brand, with IBM already committing to maintain Red Hat’s existing headquarters in Raleigh North Carolina.
The deal will see IBM’s cloud revenue grow from 4 per cent of total revenue in 2013, to 25 per cent today.
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