IBM to Acquire Red Hat

As reported, the amount of the transaction is about $ 34 billion
29 October 2018   413

IBM and Red Hat have signed a merger agreement. A Linux-based enterprise software development company officially became a division of IBM.

The main thing that interests IBM in the Red Hat experience is cloud solutions. The acquisition will allow the company to become the largest provider of hybrid cloud systems. And the open development model and support for the Red Hat product community will continue. The company will also continue work on open source projects and support the initiatives of the Patent Promise, the GPL Cooperation Commitment, the Invention Network and the LOT Network.

The amount of the transaction is about $ 34 billion. As expected, the transaction will be closed in the second quarter of 2019. Up to this point, Red Hat shareholders and antitrust services must approve it.

CEO Jim Whitehurst in a letter to all employees said that working with IBM will expand the audience and improve the company's results. According to him, the IBM and Red Hat conglomerate will be able to become the leading operator of cloud solutions in the world, as well as promote Open Source to a new level.

In October 2018, IBM introduced cloud services on the IBM Cloud platform. The company plans to attract developers and organizations to create personalized AI models, use cloud platform tools and exchange data.

Red Hat Shareholders Approve IBM Business Deal

The $ 34 billion transaction is scheduled for completion in the second quarter of 2019
18 January 2019   88

At a recent meeting of the shareholders of Red Hat, the terms of the deal to sell the Red Hat business to IBM were agreed. The owners of 141 million shares of Red Hat voted to conduct the transaction, the owners of 181 thousand shares spoke against, and the owners of 462 thousand shares abstained. This is reported by the News and Observer

Earlier in October, the deal was agreed at the level of boards of directors of Red Hat and IBM. Until the transaction is completed, it remains to obtain permission from the antimonopoly services of the countries in which the companies are registered. The transaction is scheduled for completion in the second quarter of 2019. The amount of the transaction is approximately $ 34 billion, estimated at $ 190 per share (now the value of the Red Hat share is $ 175, and at the time of the announcement of the transaction was $ 116).

Recall that after the completion of the takeover, Red Hat will continue to operate as a separate unit in the IBM Hybrid Cloud group. IBM will retain the open development model adopted by Red Hat and will continue to support the community that has evolved around Red Hat products. Including will continue to participate in various open source projects, the development of which was involved the company Red Hat. In addition, IBM and Red Hat will continue to defend the interests of free software, providing patent protection and the ability to use their patents in open source software.