IBM completed the acquisition of Red Hat for $ 34 billion

IBM and Red Hat have announced that they have completed the merger, whereby IBM has acquired all of Red Hat’s popular and marketed shares for $ 190 per share in money. face, equivalent to the total value of equity about 34 billion USD.

The deal reshaped the cloud computing market for businesses. Red Hat’s open hybrid cloud technologies will now be combined with IBM’s unmatched size and depth of innovation and expertise in each economic sector, as well as the leadership in economics. business in more than 175 countries. IBM and Red Hat will work together to accelerate innovation and innovation by providing a next generation multicloud hybrid platform. Based on open source technologies, such as Linux and Kubernetes, the platform will enable businesses to deploy, run and manage data and on-premises applications securely and on private cloud and multicloud (multi cloud).

“Businesses are stepping into the next chapter of digital initiatives, infrastructure modernization and moving loads,” said Ginni Rometty, IBM’s Chairman, Chairman and CEO. important work through private cloud and multicloud from multiple vendors They need open, flexible technology to manage multicloud and hybrid cloud environments, and they need partners they can trust to manage and security of these systems IBM and Red Hat are well suited to meet those needs As a leading hybrid cloud provider, we will help customers build and strengthen the technology platform. of their business for decades to come. ”

“When we talk to customers, we see very clear challenges: They need to move faster and make a difference through technology. They want to build more collaborative culture. , and they need solutions that enable them to flexibly build and deploy any application or workload, anywhere, ”said Jim Whitehurst, president and CEO of Red Hat. “We think that open source has become the norm in technology, because only open source facilitates these solutions. Joining IBM gives Red Hat the opportunity to bring innovation and innovation. Open source to more objects, and will allow us to scale up to meet the needs of hybrid cloud solutions to bring real choice and flexibility. ”

Red Hat will continue to be led by Mr. Jim Whitehurst and the current leadership team. Mr. Jim Whitehurst will join IBM’s senior management team, reporting directly to Ginni Rometty. IBM will maintain Red Hat’s headquarters in Raleigh, North Carolina, along with Red Hat’s foundations, brands and practices. Red Hat will operate as a separate unit in IBM and will report business results to IBM’s Cognitive and cloud computing Software Solutions division.

Both companies have built the leading cloud computing business for businesses with strong revenue growth, by supporting customers to transform their business models into the cloud.

Revenue on IBM’s cloud platform has increased from 4% of total revenue in 2013 to 25% today. This growth is due to a range of as-a-service solutions and software, services and hardware that allow IBM to advise, build, move and manage the above cloud solutions. public cloud environments, private cloud and on-premises for customers. IBM’s cloud revenue in the 12-month period until the first quarter of this year has increased to over $ 19 billion. Red Hat’s acquisition is expected to contribute about two additional gross revenue growth points to IBM over a five-year period.

Red Hat’s fiscal year 2019 revenue was $ 3.4 billion, up 15% from the previous year. Financial revenue in the first quarter of 2020, reported in June, was 934 million USD, up 15% from the previous year. In this quarter, subscription revenue increased by 15% over the previous year, in which revenue from services related to application development and other emerging technologies increased by 24% over the previous year. Service revenue also increased by 17%.

IBM reinforces Red Hat’s commitment to open source and neutrality

IBM and Red Hat have deep open source values ​​and experience. The two companies that have worked together for more than 20 years to turn open source become the default choice for modern IT solutions, including open governance and support of open source projects and communities through continuous contribution.

With Red Hat, IBM acquired one of the most important software companies in the IT industry. Red Hat’s pioneering business model helped bring open source – including technologies like Linux, Kubernetes, Ansible, Java, Ceph and more – into the mainstream product line for businesses. Today, Linux is the most used platform for development. Red Hat Enterprise Linux alone is expected to contribute to global revenue of more than $ 10 trillion by 2019. By 2023, an additional 640,000 people are expected to work in Red Hat-related jobs.

IBM is committed to expanding and accelerating open source and hybrid cloud for businesses in the economic sectors, as well as preserving the independence and neutrality of Red Hat’s open source legacy.

Red Hat’s ongoing mission and commitment to open source will not change and Red Hat will continue to provide the choice and inherent flexibility for open and hybrid IT environments. Red Hat will also continue to build and expand partnerships, including large cloud service providers, such as Amazon Web Services, Microsoft Azure, Google Cloud and Alibaba.

IBM and Red Hat also share a strong commitment to social responsibility and a sense of purpose to apply technology and expertise to help solve some of the world’s most important social challenges. The two companies have jointly committed to expanding this long-term commitment through new joint initiatives, addressing education and skills, civic and social needs and developing the Scientific workforce. Technology, Engineering and Mathematics (STEM).