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IBM Agrees to Acquire Red Hat in Deal Valued at $34-Billion, Will Become Top Hybrid Cloud Provider

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IBM Red Hat

IBM announced today that it will acquire open-source software company Red Hat, best known for their Linux operating system, in a $34 billion stock deal, pricing the latter’s shares at $190, a 63% premium above their closing price Friday. According to IBM chief executive Ginni Rometty, the acquisition would make IBM the world’s top hybrid cloud provider, or the use a mix of on-site, private and third-party public cloud services. Red Hat’s headquarters will remain in Raleigh, where the company currently has more than 2,000 employees. Continue reading for another video and more information.

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