IBM will pay $ 190 per share for the software house, which sees it as the world's leading provider of open source cloud software, a premium of more than 60 percent over Red Cases closing price of $ 116.68 on Friday. The shares traded at over $ 175 in June, but disappointed gains combined with a volatile market drove prices down sharply.
Here is the full statement:
IBM (NYSE: IBM) and Red Hat (NYSE: RHT), the world's leading provider of open source cloud software, today announced that the companies have a definitive agreement Under IBM's agreement, it intends to acquire all of Red Hat's issued and outstanding common shares for $ 1
"The acquisition of Red Hat is a groundbreaking change that is changing everything in the cloud market," said Ginni Rometty, Chairman, President and Chief Executive Officer of IBM. "IBM will be the global leader in hybrid clouds, providing businesses with the only open cloud solution that unlocks the full value of the cloud for their businesses.
" Today, most businesses are only 20 percent on their cloud Travel power to cut costs, "she said. The next 80 percent are about unlocking real business value and driving growth. This is the next chapter of the cloud. It requires moving business applications to the hybrid cloud, extracting data and optimizing all business areas from supply chain to distribution. "
" Open source is the standard choice for today's IT solutions, and I'm incredibly proud of the role Red Hat has helped make this a reality in the enterprise, "said Jim Whitehurst, president and CEO of Red Hat." Working with IBM will provide us with greater scope, resources and capabilities to accelerate the impact of Open as a foundation for digital transformation, bringing Red Hat closer to an even broader audience, while maintaining our unique culture and unshakable Commitments to open source innovation. "
This acquisition brings together the best of hybrid cloud providers and willing companies today can securely move all business applications to the cloud. Businesses are already using multiple clouds, but research shows that 80 percent of business workloads are not yet in the cloud The Clo area has been relocated, constrained by the nature of today's cloud market, which prevents portability of data and applications across multiple clouds, data security in a multi-cloud environment, and consistent cloud management.
IBM and Red Hat To be strongly positioned to address this issue and accelerate the adoption of hybrid multi-clouds, together they will help customers build cloud-native business applications faster, and the portability and security of data and applications across multiple public and private clouds In doing so, they resort to their joint leadership in Schlüsselt technologies such as Linux, containers, Kubernetes, multi-cloud management and cloud management and automation.
IBM and Red Hat's partnership has spanned over 20 years, with IBM being an early supporter of Linux, working with Red Hat to develop and extend Linux for business, and more recently, to deploy Kubernetes and the hybrid cloud Solutions for customers. These innovations became core technologies in IBM's hybrid cloud business, with sales of $ 19 billion. Between them, IBM and Red Hat have contributed more than any other organization to the open source community.
"Today's announcement is the evolution of our long-standing partnership," said Rometty. "This includes our joint announcement on hybrid cloud collaboration in May, which is an important step in our journey today."
With this acquisition, IBM will continue to champion Red Hat's open governance, open source contributions, participation in the open source community and development model, and the promotion of its widespread developer ecosystem. In addition, IBM and Red Hat will continue to champion the continued freedom of open source through patent pledges, GPL Cooperation Commitment, the Open Invention Network, and the LOT Network.
IBM and Red Hat will continue to build and grow Red Hat partnerships, including those with major cloud providers such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba, and others, in addition to the IBM Cloud. At the same time, Red Hat will benefit from the IBM cloud and enterprise IT scale in expanding its open source technology portfolio for businesses worldwide.
"IBM is committed to being an authentic multi-cloud provider and we will prioritize Red Hat technologies across multiple clouds," said Arvind Krishna, senior vice president of IBM Hybrid Cloud. "In this way, IBM will support open source technology anywhere it runs, allowing it to scale significantly within commercial environments around the world."
Upon completion of the acquisition, Red Hat will join the IBM Hybrid Cloud team as a standalone entity, maintaining the independence and neutrality of Red Hat's open source development tradition and commitment, current product portfolio and market launch strategy. Red Hat continues to be led by Jim Whitehurst and the current Red Hat management team. Jim Whitehurst will also join the senior management team at IBM and report to Ginni Rometty. IBM intends to maintain Red Hat's headquarters, facilities, brands and practices.
"IBM's commitment to always remembering the things that made Red Hat so important to the customer and the open source community makes it a great one not only for Red Hat, but also for open source Opportunity, "said Paul Cormier, President, Products and Technologies, Red Hat. "Since the day we decided to provide open source for the company, our mission has remained unchanged, and now one of the largest enterprise technology companies in the world has agreed to work with us to accelerate our efforts and bring open source innovation to an even greater part of the business. "