IBM has made public its desire to acquire Red Hat for $34 billion in an all-cash deal. As per the joint statement from both the companies, IBM would doll out $190 for each Red Hat share. This, one of the IBM acquisitions 2018, pushed Microsoft’s LinkedIn acquisition at $26.2 billion to the 2nd largest software acquisition.
Back to Roots – IBM’s Key Competency
IBM lost its track trying to venture in areas where it wasn’t a leader over the past few years. As of today, areas such as Artificial Intelligence and Blockchain have taken the center stage in the IT industry. However, IBM has always been an enterprise service player and has delivered excellence in the field.
A Glance of Red Hat – The Latest of IBM Acquisitions 2018
Red Hat, a prestigious name in the cloud computing & Linux ecosystem, is a brand quite popular for its products. The company’s OpenShift, a platform-as-a-service provider is a stark competitor to Salesforce-owned Heroku and Google App Engine. Moreover, Red Hat Enterprise Linux (RHEL) is widely deployed in commercial space such as across servers & supercomputers.
Words from the IBM CEO
IBM CEO Ginnin Rometty stated that the acquisition of Red Hat is a game-changer. It changes everything about the cloud market, making IBM the world’s #1 hybrid cloud provider. With the only open cloud solution, companies will be able to unlock the full value of the cloud for their businesses.
A Flare to Grow at Red Hat
Red Hat CEO, Jin Whitehurst, also seemed quite delighted with the development. According to him, “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. Preserving our unique culture and unwavering commitment towards open source innovation, this will bring Red Hat to a wider audience.”
Red Hat posted a 21% rise in full-year revenue, measured at $2.9 billion with a profit of $259 million. On the other hand, numbers from IBM came in at $79.1 billion for revenue and $5.8 billion for profit. The numbers are expected to grow with this deal being the biggest of IBM acquisitions 2018.
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