Business

IBM To Acquire Red Hat Inc For $34 Billion

JAVED SAIFI | 0
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| October 29 , 2018 , 18:43 IST

Tech giant IBM is all set to acquire Red Hat Inc for $34 billion, including the debts, media reported on Monday.    

"This acquisition brings together the best-in-class hybrid cloud providers and will enable companies to securely move all business applications to the cloud," the statement reads.

IBM which has a market capitalization value of $114 billion will pay $190 per share in cash for Red Hat Inc, representing a total enterprise value of approximately $34 billion.

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Ginni Rometty, IBM Chairman, President and Chief Executive Officer said, "The acquisition of Red Hat is a game-changer. It changes everything about the cloud market."

"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," 

IBM's and Red Hat's partnership has spanned 20 years, with IBM serving as an early supporter of Linux, collaborating with Red Hat to help develop and grow enterprise-grade Linux and more recently to bring enterprise Kubernetes and hybrid cloud solutions to customers.