Red Hat acquires JBoss
April 11, 2006 Red Hat announces today that it has entered into a definitive agreement to acquire JBoss, a provider of open-source middleware and Web services solutions. By buying JBoss, Red Hat hopes to accelerate its shift to service-oriented architectures (SOA), by enabling the next generation of Web services applications running on a low-cost, open source platform. "It is at Red Hat's very core to help unlock the power of open source and open communities to innovate across industries, geographies and economies," said Matthew Szulik, Chairman and CEO of Red Hat. "Red Hat and JBoss are fully aligned around the belief that the open source development model continues to change the economics of enterprise IT in favor of the customer, and we truly believe in the potential of software innovation, once freed from the fetters of proprietary development."  "Red Hat will acquire JBoss for approximately $350 million in initial consideration, plus approximately $70 million subject to the achievement of certain future performance metrics. The transaction consideration is composed of approximately 40% in cash and 60% in Red Hat common stock. The acquisition is expected to be completed around the end of Red Hat's first fiscal quarter (May 2006), subject to customary closing conditions, including regulatory approval. "The union of these two companies will demonstrate the benefits of a pure open source play," said Marc Fleury, CEO of JBoss. "Our customers are increasingly standardizing their infrastructures on open source technologies and want a stable and trusted global open source vendor to support them.  By joining forces with Red Hat, we expect to be able to provide enterprises the largest offering of open source solutions, a global services network staffed by technology experts, and a large and vibrant eco-system of certified products and services. This is a winning combination that we believe will further expedite the proliferation of open source in the enterprise, which has been our mission since day one." "Red Hat believes that the acquisition will be slightly dilutive to its quarter ending August 31, 2006, but neutral to earnings and cash flow for the full fiscal year. The transaction is expected to be accretive to both earnings and cash flow in the next fiscal year ending February 28, 2008. Source: Web Services.org  Have your website professionally optimized by the search engine positioning experts at Rank for $ales. If your site has dropped in rankings since November 16, 2003, contact the search engine positioning experts at Rank for Sales. Get your business or company listed in the Global Business Listing directory and increase your business. It takes less then 24 hours to get a premium listing in the most powerful business search engine there is. Click here to find out all about it. For the best technical information on hardware, software, Internet applications, e-Commerce, B2B, Web services or IT-related industry news, visit Tech Blog. Reciprocal Link Exchange Program: If your company is engaged in the business of Web Services, the development of related Internet application, ecommerce or B2B development, Internet security services, Web hosting services or is involved in professional Search Engine Optimization, My Web Services is seriously interested in a worthwhile Reciprocal Link Exchange Trading Program with your company. Click here to get all the details.
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