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IBM closes Red Hat acquisition for $34 billion

2019-07-09 17:42 by
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International Business Machines Corp. closed its roughly $34 billion acquisition of open-source software company Red Hat Inc., the companies announced Tuesday. The company, which won approval for the purchase from U.S. regulators in May and European Union regulators in late June, agreed to pay $190 a share for Red Hat, representing a 63 percent premium.

IBM is calling its purchase of Red Had its largest acquisition that will help it expand its portfolio to boost and the size of its $19 billion cloud business and tap into what it sees as a $1 trillion market.

"A lot of our mutual clients are interested in doing a lot more," says Arvind Krishna, Senior Vice President, IBM Cloud & Cognitive Software in a blog post. "Many see this as an opportunity for us to create large industry ecosystems with other providers who are optimized on this common infrastructure. ...If Red Hat were to do this on their own, there would be a limit to how much they can scale. Together, we can put a lot more resources into optimizing other partners."

IBM says that Red Hat will stay under the watch of CEO Jim Whitehurst, with Whitehurst joining IBM's senior management and reporting directly to IBM CEO Ginni Rometty.

Read more -here-

 

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