IBM, on Sunday, has announced that it is planning to acquire the American’s multinational open-source software development company, the Red Hat, to create the leading hybrid/multi-cloud provider. The Red Hat is the publicly traded company that has a market cap of $20.5 billion, with 176 million its shares are outstanding.
Noticeably, Red Hat is the software provider for the largest tech giants including Google, Amazon and Microsoft. That means after, IBM and Red Hat join their hands, IBM will automatically be delivering services to its rival companies.
The changing technology within the past few years has brought many changes the users used the technology. And, in no time the user’s data was moved from the hard disk of their desktops to the clouds. The Dropbox, Netflix, Flickr, Google Drive, Microsoft Office 365, Yahoo Mail are all cloud services and are the most used applications by the users. The only difficulty in using those cloud services is the moving of the data between those applications. But the deal between IBM and Red Hat will be a hybrid cloud arrangement, that will focus on solving the issue, as they together will provide the facility to move the data between various cloud services.
Ginni Rometty, IBM’s chairman, president and chief executive said, “The acquisition of Red Hat is a game-changer, It changes everything about the cloud market.” The companies have called the deal, but IBM has to get approval from the other shareholders too, for that it has scheduled a conference call with investors on Monday at 8:30 a.m. Eastern.
The deal will be closed by paying Red Hat $190 a share in cash, with an enterprise value of about $34 billion. The deal will accelerate the IBM’s high business model and will make it world’s number one hybrid cloud provider. Red Hat will still retain its open-source legacy and operate as a distinct unit. The deal is expected to close by the end of the half of 2019.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.