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IBM buys Red Hat for $ 34 billion

After the deal is closed, Red Hat will become part of the corporate division.

According to The New York Times, IBM acquires Red Hat, the largest distributor of the Linux operating system. The parties reached a final agreement providing for the purchase by IBM of all Red Hat emitted shares at a price of $ 190 per unit, representing a total enterprise value of approximately $ 34 billion

Both sides are linked by 20 years of mutually beneficial cooperation. Red Hat after the closing of the transaction will be transferred to the core division of the corporation. CEO Jim Whitehurst will join the IBM board and will report directly to the chairman of the board of directors and president of IBM, Ginny Rometti.

Purchasing is one of the competitive moves among large software companies to take advantage of the fast-growing cloud computing market. The main cloud platforms delivered by such Internet giants as Amazon, Microsoft and Google include proprietary technology that makes it difficult to move from one cloud to another. With Red Hat, the open source leader, IBM is trying to position its cloud offer as a more open alternative.

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