IBM Buys Red Hat For $34 Billion
Julian Lee
Publisher, Community Builder, Speaker, Channel Ecosystem Developer with a focus on cybersecurity, AI and Digital Transformation. Subscribe to eChannelNews to learn more or follow me on LinkedIn.
The ink is still fresh on this $34 Billion deal so in the days to come we will be digesting what this will mean to the Open Source Community, Cloud market and the IT Channel moving forward. We knew that Red Hat and IBM have been collaborating with each other for a long time, but we did not see this one coming. Demonstrates that nothing should surprise us and we should be prepared for anything.
On the outset, this may be an accelerator for companies to adopt the Cloud.
Here are some highlights. You can get more details and follow the progress on e-ChannelNEWS.
- IBM and Red Hat have reached a deal whereby IBM will acquire all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately $34 billion.
- IBM and Red Hat to provide open approach to cloud, featuring unprecedented security and portability across multiple clouds
- Deal accelerates IBM’s high-value business model, making IBM the #1 hybrid cloud provider in an emerging $1 trillion growth market
- IBM to maintain Red Hat’s open source innovation legacy, scaling its vast technology portfolio and empowering its widespread developer community
- Red Hat to operate as a distinct unit within IBM’s Hybrid Cloud team
“The acquisition of Red Hat is a game-changer. It changes everything about the cloud market,” said Ginni Rometty, IBM Chairman, President and Chief Executive Officer. “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.
“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,” said Jim Whitehurst, President and CEO, Red Hat. “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.”