IBM To Acquire Red Hat For $34 Billion

Recently, IBM has announced that it is going to acquire the renowned software maker Red Hat Inc. for $33.4 billion to expand its reach as an enterprise cloud computing provider. IBM will pay $190 a share in cash for Raleigh, North Carolina-based Red Hat, according to a statement from the companies Sunday.
Source: Redhat 
Red Hat has been a leading provider of open source software and services for enterprise customers, largely focusing on cloud computing and Linux servers. In 2012, it became the first firm providing open-source software to exceed $1 billion in revenue. It will now become a part of IBM’s Hybrid Cloud division.
"The acquisition of Red Hat is a game-changer. It changes everything about the cloud market," commented Ginni Rometty, IBM Chairman, President, and Chief Executive Officer. "IBM will become the world's #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses."
According to IBM, the acquisition will allow it to expand its cloud computing offerings. Currently, most companies are at only twenty percent in their cloud journey; the remaining 80 percent is about unraveling real business value and driving growth.
Red Hat will add to IBM's Hybrid Cloud division as a distinct unit and will continue to be headed by Jim Whitehurst (President and CEO, Red Hat) and Red Hat's current management team. Jim Whitehurst will also be the part of IBM Senior Management team and report to Ginni Rometty. IBM wants to maintain Red Hat's headquarters, facilities, brands, and practices.
"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 and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation," exclaimed Jim Whitehurst.
The acquisition is expected to close in the later half of 2019. The Red Hat purchase is expected to give IBM an immediate cloud revenue boost growth as well as a suite of proven software products to sell through its global sales force.