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#News(IoTStack) [ via IoTForIndiaGroup ]
IBM has announced their intention to acquire Red Hat in a deal valued at $34B USD. The deal has already been approved by both company’s boards and is subject to regulatory and shareholder approvals.
The deal would be the largest software acquisition ever and third largest technology acquisition behind the Dell / EMC and Avago/Broadcom deals.
The acquisition represents a healthy 11x multiple on 2017 Red Hat revenues, which is very impressive for a 21% growth company.
In their published remarks, IBM and Red Hat position the acquisition as a move for IBM to become the largest infrastructure provider for the hybrid cloud, angling for IBM to be the primary supplier to public clouds with their intention to develop deeper partnerships with vendors like Microsoft, Google, and Amazon.
Last year, my last company, Codenvy, was acquired by Red Hat, and during my short tenure there, discussions of Red Hat being acquired were broadly discussed with Google, Microsoft and IBM as likely acquirers.
Open Source Is the Biggest Theme In Technology This Year
Open source has been the biggest theme in technology this year.Prior to IBM’s purchase of Red Hat, three of the biggest tech deals of the year were:
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