IBM pays $ 190 per share to the software company, described as the world's leading open source software provider, a…
IBM pays $ 190 per share to the software company, described as the world’s leading open source software provider, a premium of more than 60% to Red Hat’s final share price of $ 116.68 on Friday. The shares traded upwards of $ 175 in June, but declining revenue combined with a volatile market had seen the price drop sharply.
Here is the complete statement:
IBM (NYSE: IBM) and Red Hat (NYSE: RHT), the world’s leading provider of open source cloud software, announced today that the companies have reached a final agreement under which IBM will acquire all issued and outstanding ordinary shares in Red Hat for $ 1
90.00 per share in cash, corresponding to a total corporate value of approximately $ 34 billion.
“The acquisition of Red Hat is a game banger. It’s changing everything about the cloud market,” said Ginni Rometty, IBM President, President and CEO. “IBM will be the world’s hybrid supplier # 1, offering companies the only open cloud solution that unlocks the full value of the cloud for their businesses.
“Most companies today are only 20 percent along their clouds, renting out the power to reduce costs, she says.” The next 80 percent are about unlocking real business value and driving growth. This is the next chapter in the cloud. It requires business applications to be moved to hybrid clouds, extracting more data and optimizing all parts of the business, from supply chains to sales. “
” Open Source is the default choice for modern IT solutions, and I’m incredibly proud of the role that Red Hat has played to make reality in the company, “said Jim Whitehurst, President and CEO of Red Hat. “Combining with IBM gives us a larger scale, resources and ability to speed up the open source effect as a basis for digital transformation and Red Hat to an even more crowded audience – all while preserving our unique culture and unprecedented commitment to open source innovation.”  This acquisition brings together the best hybrid recipients and the will enable companies to safely move all business applications to the cloud. Business today already uses several clouds. But research shows that 80 percent of the company’s workloads still did not move to clout, held back by the proprietary nature of today’s cloud market. This prevents the transfer of data and applications over multiple clouds, data security in a cloud environment and consistent molar management.
IBM and Red Hat will be highly positioned to address this issue and accelerate hybrid antivirus. Together, they help customers to create faster domestic business applications faster, drive greater portability and security for data and applications across multiple public and private clouds, all with consistent cloud management. By doing so, they will utilize their common leadership in key technologies, such as Linux, containers, Kubernetes, multi-cloud management and cloud management and automation.
IBM’s and Red Hat’s partnership has been over 20 years. IBM works as an early supporter of Linux and collaborates with Red Hat to help develop and grow corporate Linux and more recently to provide business Kubernetes and hybrid cloud solutions to customers. These innovations have become core technology in IBM’s hybrid industry with $ 19 billion. Between them, IBM and Red Hat have contributed more to open source communities than any other organization.
“Today’s announcement is the development of our long-term partnership,” said Rometty. “This includes our joint Hybrid Cloud cooperation announcement in May, an important precursor in our trip to this day.”
With this acquisition, IBM will remain committed to Red Hat’s open-ended management, open source contributions, participation in open source community and development model, and promote its widespread development ecosystem. In addition, IBM and Red Hat will be committed to continued open source through such efforts as Patent Promise, GPL Cooperation Commitment, Open Invention Network and LOT Network.
IBM and Red Hat will continue to build and improve Red Hat partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba and more, in addition to IBM Cloud. At the same time, Red Hat will benefit from IBM’s hybrid clouds and corporate IT scale to help expand its open source technology portfolio to companies globally.
“IBM is committed to being an authentic multi-cloud supplier, and we will prioritize the use of multi-cloud Red Hat technology,” said Arvind Krishna, vice president of IBM Hybrid Cloud. “Therefore, IBM supports open source technology wherever it goes, which means it can scale significantly in commercial environments around the world.”
Upon completion of the acquisition, Red Hat will join IBM’s Hybrid Cloud team as a dedicated entity that maintains the independence and neutrality of Red Hat’s open source development heritage and responsibility, the current product portfolio and strategy for marketing and uniqueness development culture. Red Hat continues to be led by Jim Whitehurst and Red Hat’s current management team. Jim Whitehurst will also join IBM’s management team and report to Ginni Rometty. IBM intends to maintain Red Hat’s headquarters, facilities, trademarks and practices.
“IBM’s commitment to retaining the things that have made Red Hat successful – always thinking of the customer and the open source community first – make this a great opportunity for not only Red Hat but also open source to a greater extent,” said Paul Cormier , President, Products and Technologies, Red Hat. “Since the day we decided to create open source for the company, our mission has remained unchanged. And now one of the world’s largest enterprise technology companies has agreed that we will work with us to scale and speed up our efforts, giving open source innovation to an even greater part of the company. “