Sony Pixel Power calrec Sony

IBM Closes Landmark Acquisition of Red Hat for $34 Billion; Defines Open, Hybrid Cloud Future

09/07/2019

London - 09 Jul 2019: - Acquisition positions IBM as the leading hybrid cloud provider and accelerates IBMs high-value business model, extending Red Hats open source innovation to a broader range of clients - IBM preserves Red Hats independence and neutrality; Red Hat will strengthen its existing partnerships to give customers freedom, choice and flexibility - Red Hats unwavering commitment to open source remains unchanged - Together, IBM and Red Hat will deliver next-generation hybrid multicloud platform

ARMONK, N.Y. and RALEIGH, N.C., July 9, 2019 /PRNewswire/ -- IBM (NYSE: IBM) and Red Hat announced today that they have closed the transaction under which IBM acquired all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total equity value of approximately $34 billion.

The acquisition redefines the cloud market for business. Red Hat s open hybrid cloud technologies are now paired with the unmatched scale and depth of IBM s innovation and industry expertise, and sales leadership in more than 175 countries. Together, IBM and Red Hat will accelerate innovation by offering a next-generation hybrid multicloud platform. Based on open source technologies, such as Linux and Kubernetes, the platform will allow businesses to securely deploy, run and manage data and applications on-premises and on private and multiple public clouds.

"Businesses are starting the next chapter of their digital reinventions, modernizing infrastructure and moving mission-critical workloads across private clouds and multiple clouds from multiple vendors," said Ginni Rometty, IBM chairman, president and CEO. "They need open, flexible technology to manage these hybrid multicloud environments. And they need partners they can trust to manage and secure these systems. IBM and Red Hat are uniquely suited to meet these needs. As the leading hybrid cloud provider, we will help clients forge the technology foundations of their business for decades to come."

"When we talk to customers, their challenges are clear: They need to move faster and differentiate through technology. They want to build more collaborative cultures, and they need solutions that give them the flexibility to build and deploy any app or workload, anywhere," said Jim Whitehurst, president and CEO, Red Hat. "We think open source has become the de facto standard in technology because it enables these solutions. Joining forces with IBM gives Red Hat the opportunity to bring more open source innovation to an even broader range of organizations and will enable us to scale to meet the need for hybrid cloud solutions that deliver true choice and agility."

Red Hat will continue to be led by Jim Whitehurst and its current management team. Whitehurst is joining IBM s senior management team, reporting to Ginni Rometty. IBM will maintain Red Hat s headquarters in Raleigh, North Carolina, its facilities, brands and practices. Red Hat will operate as a distinct unit within IBM and will be reported as part of IBM s Cloud and Cognitive Software segment.

Both companies have already built leading enterprise cloud businesses with consistent strong revenue growth by helping customers transition their business models to the cloud.

IBM s cloud revenue has grown from 4 percent of total revenue in 2013 to 25 percent today. This growth comes through a comprehensive range of as-a-service offerings and software, services and hardware that enable IBM to advise, build, move and manage cloud solutions across public, private and on-premises environments for customers. IBM cloud revenue for the 12-month period through the first quarter of this year grew to over $19 billion. The Red Hat acquisition is expected to contribute approximately two points of compound annual revenue growth to IBM over a five-year period.

Red Hat s fiscal year 2019 revenue was $3.4 billion, up 15 percent year-over-year. Fiscal first quarter 2020 revenue, reported in June, was $934 million, up 15 percent year-over-year. In that quarter, subscription revenue was up 15 percent year-over-year, including revenue from application development-related and other emerging technology offerings up 24 percent year-over-year. Services revenue also grew 17 percent.

The Hybrid Cloud Opportunity

Digital reinvention is at an inflection point as businesses enter the next chapter of their cloud journey. Most enterprises today are approximately 20 percent into their transition to the cloud. In this first chapter of their cloud journey, businesses made great strides in reducing costs, boosting productivity and revitalizing their customer-facing innovation programs. Chapter two, however, is about shifting mission-critical workloads to the cloud and optimizing everything from supply chains to core banking systems.

To succeed in the next chapter of the cloud, businesses need to manage their entire IT infrastructure, on and off-premises and across different clouds private and public in a way that is simple, consistent and integrated. Businesses are seeking one common environment they can build once and deploy in any one of the appropriate footprints to be faster and more agile. IBM s offerings have evolved to reflect new customer needs and drive greater growth. The acquisition of Red Hat further strengthens IBM as the leader in hybrid cloud for the enterprise.

"As organizations seek to increase their pace of innovation to stay competitive, they are looking to open source and a distributed cloud environment to enable a new wave of digital innovation that wasn t possible before. Over the next five years, IDC expects enterprises to invest heavily in their journeys to the cloud, and innovation on it. A large and increasing portion of this investment will be on open hybrid and multicloud environments that enable them to move apps, data and workloads across different environments,"
LINK: http://www-03.ibm.com/press/uk/en/pressrelease/55204.wss...
See more stories from ibm

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

04/08/2026

Dalet Announces Commercial Availability of Dalia, Bringing Media-Aware Agentic AI to Enterprise Productions

Dalet, a leading technology and service provider for media-rich organizations, t...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

03/06/2026

NAB Launches Merkhet Solutions to Advance Deployment of BPS

Share Copy link Facebook X Linkedin Bluesky Email...

03/06/2026

FCC Kicks Off First Spectrum Auction in Four Years

Share Copy link Facebook X Linkedin Bluesky Email...

03/06/2026

Utopai Studios Launches Pai 2.0, Cinematic Storytelling AI System

Share Copy link Facebook X Linkedin Bluesky Email...

03/06/2026

Roku Introduces NHL Zone

Share Copy link Facebook X Linkedin Bluesky Email...

03/06/2026

Study: Record Revenue Expected for FIFA World Cup 2026

Share Copy link Facebook X Linkedin Bluesky Email...

03/06/2026

Frequency Launches In-Scene Advertising

Share Copy link Facebook X Linkedin Bluesky Email...

03/06/2026

Creamsource Introduces Vortex2 and Vortex2 Soft

Creamsource, known for its tried-and-true Vortex Series of cinematic lighting, has announced the Vortex2 (V2) and Vortex2 Soft (V2S), two compact additions to t...

03/06/2026

Do not read this media release! Andy Lee's smash-hit show returns to ABC this July

Do not read this media release! Andy Lee's smash-hit show returns to ABC thi...

03/06/2026

Faster, More Flexible AI Matting Fuels Boris FX Silhouette

Faster, More Flexible AI Matting Fuels Boris FX Silhouette Jessie Electa Petrov June 2, 2026 0 Comments The 2026 release helps artists tackle complex ...

03/06/2026

La Tl's National League Hockey Expansion Powered by Blackmagic Design

La T l 's National League Hockey Expansion Powered by Blackmagic Design Brie Clayton June 2, 2026 0 Comments Blackmagic Videohub 120 120 12G provi...

03/06/2026

ZY Optics to Offer Exclusive First Look at Zone T1 Cine Kit at Cine Gear Expo 2026

ZY Optics to Offer Exclusive First Look at Zone T1 Cine Kit at Cine Gear Expo 20...

03/06/2026

Berklee Alumni St. Vincent and Ruby Plume to Perform Together on St. Vincents 2026 Live with Orchestra Tour

Berklee Alumni St. Vincent and Ruby Plume to Perform Together on St. Vincents 20...

02/06/2026

Case Study: Tennis Channel Transitions From Satellite to IP Distribution With LTN

Tennis Channel has completed a transition from satellite-based distribution to a...

02/06/2026

Daktronics Announces 2026 High School Video Summit for June 23-24

Daktronics has announced the 2026 High School Video Summit, a two-day educational event for high school educators and student production teams, taking place Jun...

02/06/2026

Fandango to Screen Telemundos FIFA World Cup 2026 Coverage at 160 Theaters Nationwide

Fandango will bring Telemundo's live Spanish-language coverage of the FIFA W...

02/06/2026

AWSN Announces Broadcast Schedule for Inaugural Professional Softball League Season

All Women's Sports Network (AWSN) has announced the live television schedule...

02/06/2026

Spalk Announces Partnerships with Ligue 1, Euroleague, and LNB

Spalk, a cloud-based multilingual commentary and production platform, has announced three new partnerships: Ligue 1 (English and Portuguese highlights), Eurolea...

02/06/2026

NHL Network Announces Stanley Cup Final Programming Schedule

NHL Network's 2026 Stanley Cup Final coverage began June 1 with NHL Tonight: Stanley Cup Final Media Day from the Carolina Hurricanes' Lenovo Center at ...

02/06/2026

Matrox Video Launches Maevex MGX Series IPMX-Ready AV-over-IP Encoders and Decoders

Matrox Video has announced the Maevex MGX Series, a lineup of IPMX-ready video e...

02/06/2026

Marshall Electronics to Exhibit IP Camera Lineup at InfoComm 2026

Marshall Electronics will exhibit at InfoComm 2026 (Booth C7521), showcasing a lineup of 4K and HD compact POV cameras for corporate, education, hospitality, wo...

02/06/2026

PAMA and Shure Extend Deadline for Mark Brunner Professional Audio Scholarship to June 15

The Professional Audio Manufacturers Alliance (PAMA) and Shure Incorporated have...

02/06/2026

MultiDyne To Debut FiberSaver-10G and New VersaBrix Frame Options at InfoComm 2026

MultiDyne Video and Fiber Optic Systems will exhibit at InfoComm 2026 (Booth C50...

02/06/2026

Advanced Systems Group Promotes Joe Marchitto to Western Regional CTO

Advanced Systems Group (ASG) has announced the promotion of Joe Marchitto to Western Regional CTO. In his new role, Marchitto will oversee system design across ...

02/06/2026

Brothers Osborne To Perform Free Concert Outside Lenovo Center Before Stanley Cup Final Game 1

The NHL has announced that Brothers Osborne will headline a free outdoor concert...

02/06/2026

CP Communications Names First Female Executives in Company History

CP Communications has announced the appointment of its first two female executives in the company's 40-year history. Tabitha Coleman has been named Vice Pre...

02/06/2026

Lighting Design Group Designs Broadcast Studio for Yahoo at 770 Broadway

The Lighting Design Group (LDG) has announced the completion of Studio C at Yahoo's headquarters at 770 Broadway in Manhattan. The studio launched April 24 ...

02/06/2026

Zee Entertainment Acquires FIFA Media Rights for India Through 2034

Zee Entertainment Enterprises Ltd. (Z) has announced a partnership with FIFA to broadcast FIFA World Cup 2026, FIFA World Cup 2030, FIFA Women's World Cup 2...

02/06/2026

Behind The Mic: Prime Sports UK Shares On Air Roster for NBA Finals; and More

Behind The Mic provides a roundup of recent news regarding on-air talent, including new deals, departures, and assignments compiled from press releases and repo...

02/06/2026

Auburn Universitys Parker Leppien on the Nonstop Growth of War Eagle Productions

The department is broadcasting NCAA Baseball Super Regionals at Plainsman Park this weekend Broadcast and production crews at Division I institutions are busy ...

02/06/2026

With Stanley Cup Final Set To Begin, NHL and Honeywell Lay Foundation for Energy-Efficient Venues

The initiative is extends beyond the league's arenas to team training rinks,...

02/06/2026

Release Rundown: What to Watch in June, From Leviticus to The Invite

Olivia Wilde, Seth Rogen, Pen lope Cruz, and Edward Norton appear in The Invite by Olivia Wilde, an official selection of the 2026 Sundance Film Festival. (Co...

02/06/2026

Scaler Music launch Carbon Electra 2

Musically intelligent soft synth gets upgraded Scaler Music will be probably be best known to many for their music theory tools, but their product range al...

02/06/2026

Klevgrand introduce Altitude

Powerful new vocal-production tool announced Described as a vocal performance station , Klevgrand's latest plug-in combines pitch-correction with harmo...

02/06/2026

McDSP introduce DC-2 Dual Compressor for APB

Launched alongside Go Green sale extension McDSP have just released the latest addition to their APB line-up, DC-2 Dual Compressor, and have also announced ...

02/06/2026

Ableton announce Extensions SDK

Create custom tools for Ableton Live 12 Suite Ableton have just introduced a new open JavaScript toolkit that allows anyone to create their own custom tools...

02/06/2026

Eventide unveil the H9 Harmonizer Gen 2

Now features full H90 algorithm library Eventide have announced the upcoming launch of the H9 Harmonizer Gen 2, a new and improved version of their hugely p...

02/06/2026

Universal Audio release UAD Topline Vocal Tune

Plus UAD Half Yearly Sale now live The latest arrival to the Universal Audio range delivers a new native pitch-correction plug-in that's capable of deli...

02/06/2026

BTL Laboratory becomes Taiwan's first test house with a CTIA Certification compliant OTA test system by Rohde & Schwarz

BTL Laboratory becomes Taiwan's first test house with a CTIA Certification c...

02/06/2026

Cobalt Digital to Showcase End-to-End IPMX Ecosystem at InfoComm 2026, Making ST 2110 Easy for Pro AV

blueCORE standalone processors headline solutions designed to simplify the trans...

02/06/2026

Monetizing the Archive: How Cantemo's JIT Playback Eliminates the Proxy Bottleneck

If you've kept up with this article series, you know by now where to start w...

02/06/2026

Calrec Scales ImPulseV for Greater Choice in Virtualised Workflows

With new DSP configurations and flexible licensing options, Calrec is removing the barriers to virtualised audio, giving broadcasters the freedom to scale produ...

02/06/2026

Marketing Architects Expands Relationship With Nielsen To Include Integration of Media Data Engine on a National Level

The TV agency was one of the earliest adopters of Nielsen's local television...

02/06/2026

Riedel Networks Taps Gudrun Scharler as CEO

Share Copy link Facebook X Linkedin Bluesky Email...

02/06/2026

Grass Valley Enables Sky News Australia s Cloud-First New...

Grass Valley today announced that Australian News Channel (ANC), operator of Sky News Australia, has deployed Grass Valley AMPP to transform its newsroom produc...

02/06/2026

STUDIO TECHNOLOGIES INTRODUCES NEW MODEL 385 MIC INTERCOM...

Studio Technologies, a leading manufacturer of high-quality audio, video, and fiber-optic solutions, announces its new Model 385 Mic/Intercom Beltpack. The Mode...

02/06/2026

Gudrun Scharler Appointed CEO of Riedel Networks

The Riedel Group today announced the appointment of Gudrun Scharler as CEO of Riedel Networks. She succeeds Michael Martens, who has led Riedel Networks since 2...