IBM to Acquire Red Hat in $34 Billion Deal

IBM announced this week that it will be acquiring open-sourced software company Red Hat in a deal which is reportedly valued at around $34 billion.

 

In a joint statement, IBM said that it will be buying all of Red Hat’s shares at $190. The company’s shares closed at $116.68 on Friday before the deal was announced.

 

Red Hat is expected to become a unit of the IT giant’s Hybrid Cloud division, with Red Hat CEO Jim Whitehurst to become part of the senior management team.

 

The deal is said to be IBM’s biggest acquisition ever, and the third biggest in the history of the US’ tech industry.

 

Source: CNBC