IBM hailed the closing of a $34 billion acquisition of open source software company Red Hat as clearing the way to usher in a new chapter in the development of cloud services.
The company confirmed the acquisition, first announced in October 2018, had been completed around a fortnight after the deal received unconditional approval from European regulators.
In a statement, IBM said the acquisition “redefines the cloud market for business”. It plans to integrate Red Hat’s open hybrid cloud technologies with its scale and global footprint to create the world’s “leading hybrid cloud provider and accelerate IBM’s high-value business model”.
IBM chairman, president and CEO Ginni Rometty (pictured, right) said businesses are now starting the “next chapter” of their digital reinventions, and moving mission-critical workloads across private clouds from multiple vendors.
“They need open, flexible technology to manage these hybrid multi-cloud 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,” she explained.
Red Hat CEO Jim Whitehurst (pictured, left) and other executives will join the merged entity, with Whitehurst also becoming a member of IBM’s senior management team, reporting to Rometty.
The company will operate as a distinct unit within IBM, within its Cloud and Cognitive Software segment.Subscribe to our daily newsletter Back