Red Hat $34 Billion acquisition by IBM gets completed

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Red Hat, an open source software technology providing company will from now on be a part or subsidiary of IBM’s Hybrid Cloud Division, as per an official announcement made by the New York-based technology giant today.

IBM’s objective of this $34 billion deal is to position itself strongly in the field of cloud technologies- especially cloud security, mobile, and analytics.

A media update provided by the spokesperson of International Business Machines Corporation(IBM Corp) states that Red Hat will now on be treated as a unit of the IBM’s Cloud and its CEO Jim Whitehurst will be joining the senior management team of IBM and reporting to the latter’s CEO Ginni Rometty.

To be specific, IBM was placed in the 6th position when it comes to cloud business as companies like Amazon, Microsoft, and Google were seen topping the cloud infrastructure business. As the revenue from cloud services was declining from the past 3 quarters, market analysts say that Red Hat’s deal will help bring in new business to IBM.

Since October last year, the deal was talked much in the industry as IBM declared that the deal will probably be the biggest in the company history as it was buying the shares of Red Hat at $190 each in cash.

In an official email sent to Red Hatters by the company CEO Jim Whitehurst, he was seen giving a special mention to IBM’s technological history and visioned that the deal will benefit both companies, its customers, partners and the whole of the open source community.

As Red Hat serves in more than 40 countries and IBM in 175 nations, Red Hat’s technology is said to help IBM’s multi-cloud strategy to build innovative hybrid cloud platforms, Kubernetes, and Containers.