IBM to acquire Red Hat in deal valued at $34 billion

IBM to acquire Red Hat in deal valued at $34 billion

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  • IBM announced plans to acquire Red Hat in a deal valued at about $34 billion.
  • Prior to the acquisition, Red Hat’s market capitalization stood at approximately $20.5 billion.
  • The acquisition is by far IBM’s largest deal ever, and the third-biggest in the history of U.S. tech.

IBM is acquiring Red Hat, a major distributor of open-source software and technology, in a deal valued around $34 billion, the companies announced on Sunday. 
According to a joint statement, IBM will pay cash to buy all shares in Red Hat at $190 each. Shares in Red Hat closed at $116.68 on Friday before the deal was announced. 
The open source, enterprise software maker will become a unit of IBM’s Hybrid Cloud division, with Red Hat CEO Jim Whitehurst joining IBM’s senior management team and reporting to CEO Ginni Rometty. Read more…