IBM Acquires Red Hat
Red Hat becomes an independent entity within IBM.
IBM has completed the acquisition of Open Source company Red Hat for approximately $34 billion. Founded in 1993 as a Linux vendor, Red Hat has evolved into an open-source infrastructure player. Red Hat has become synonymous with successful ‘Open Source’ business model that’s often called the Red Hat Business Model.
Red Hat has become one of the most successful Open Source companies, clocking in at around $3.4 billion in annual revenues. The company will become an independent entity within IBM as part of IBM’s Cloud and Cognitive Software segment.
Red Hat will continue to be led by Jim Whitehurst and its current management team. Whitehurst will report to IBM CEO, Ginni Rometty.
IBM will maintain Red Hat’s headquarters in Raleigh, North Carolina, its facilities, brands, and practices.
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