Redefining the cloud market for business, IBM has closed its $34 billion acquisition of open-source software provider Red Hat. Together, IBM and Red Hat will accelerate innovation by offering a next-generation hybrid multi-cloud platform. IBM acquired all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash. It is the company’s biggest acquisition in its more than 100-year history.
“Businesses are starting the next chapter of their digital reinventions, modernizing infrastructure and moving mission-critical workloads across private clouds and multiple clouds from multiple vendors. They need open, flexible technology to manage these hybrid multi-cloud environments. And they need partners they can trust to manage and secure these systems. IBM and Red Hat are uniquely suited to meet these needs,” said Ginni Rometty, IBM chairman, President and CEO.
Red Hat specializes in open-source software. With the collaboration, Red Hat’s open source innovation can be extended to a broader range of clients. Red Hat’s unwavering commitment to open source will remain unchanged. The software company’s open-source skills coupled with IBM’s industry expertise and marketing muscle will be a good thing for customers moving to the next chapter of digital reinvention.
“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,” said Jim Whitehurst, president, and CEO, Red Hat.
IBM informed that it would be preserving the independence and neutrality of Red Hat’s open source heritage. “Red Hat is going to stay platform neutral. Let’s be extremely clear about that. For this to be successful, it is key that products can run anywhere that clients want them to see. Guaranteeing access to the broadest possible ecosystem is what enables true choice for customers. It’s in everyone’s interest to let Red Hat be Red Hat,” explained Arvind Krishna, Senior Vice President, IBM Cloud & Cognitive Software, in the company blog.
Red Hat will continue to be led by Jim Whitehurst, and he will join IBM’s senior management team, reporting to Ginni Rometty. IBM will maintain Red Hat’s headquarters in Raleigh, North Carolina, its facilities, brands, and practices. Red Hat will operate as a distinct unit within IBM and will be reported as part of IBM’s Cloud and Cognitive Software segment.