2018-10-29
IBM agreed to acquire the US software company Red Hat
 
$ 34 billion, including debt, as it seeks to diversify its equipment and technology consulting business into more profitable products and services
 
This is the largest acquisition for IBM. The company's chief executive officer, Jenny Rommetti, confirms the company's expansion of its software-based offerings as it faces a slowdown in software sales and shrinking demand for major PCs.
 
IBM, with a market cap of $ 114 billion, will pay $ 190 in cash per share at Red Hat, up 62 percent from Friday's closing price.
 
"The acquisition of Red Hat will change the rules of the game. IBM will become the number one company in the world to provide private and public cloud computing services," Roumiti said in a statement.
 
The deal is expected to be finalized by IP. (NYSE: EMT) in the second half of 2019. IBM said it plans to halt its share repurchase program in 2020 and 2021 to help finance the deal.
 
Jim Whitehurst will continue to serve as chief executive officer of Red Hat and IBM's current board will continue to play its role, IBM said. IBM intends to maintain Red Hat's headquarters, facilities, brands and methods