IBM Set To Buy Over Red Hat For $34 Billion

IBM has announced that it has reached an agreement to buy over Red Hat, an American software company. The ideal which is valued at approximately $34 billion, is sold at $190.00 per share in cash.  The deal will see Red Hat joining IBM’s Hybrid Cloud team as a distinct unit, preserving the independence and neutrality of Red Hat’s open source development, heritage and commitment, current product portfolio and go-to-market strategy, and unique development culture. 

IBM believes that the acquisition will enable companies to securely move all business applications to the cloud, since research shows that 80% of business workloads have yet to move to the cloud, held back by the proprietary nature of today’s cloud market.

Both IBM and Red Hat has been doing business together for over 20 years now. Red Hat which was founded in 1993 released its first Red Hat Linux in Oct. 31, 1994. IBM and Red Hat also will continue to build and enhance Red Hat partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba and more, in addition to the IBM Cloud. At the same time, Red Hat will benefit from IBM’s hybrid cloud and enterprise IT scale in helping expand their open source technology portfolio to businesses globally.

Speaking on the acquisition, Ginni Rometty, IBM Chairman, President and Chief Executive Officer, said:

The acquisition of Red Hat, is a game-changer. It changes everything about the cloud market. IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.
Most companies today are only 20 percent along their cloud journey, renting compute power to cut costs. The next 80 percent is about unlocking real business value and driving growth. This is the next chapter of the cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales.

Also, Jim Whitehurst, President and CEO, Red Hat, said:

Open source is the default choice for modern IT solutions, and I’m incredibly proud of the role Red Hat has played in making that a reality in the enterprise.Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation.

Already the acquisition has been approved by the boards of directors of both IBM and Red Hat, and is subject to Red Hat shareholder approval, regulatory approvals and other customary closing conditions. The deal is expected to close in the latter half of 2019.
IBM Set To Buy Over Red Hat For $34 Billion IBM Set To Buy Over Red Hat For $34 Billion Reviewed by King Larry on October 29, 2018 Rating: 5

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