The Channel logo

News

By | John Oates 10th April 2006 13:51

Red Hat buys JBoss

Start-up sold for cash

Linux distributor Red Hat has bought open source middleware firm JBoss for $350m.

The price includes $70m which is subject to performance targets. Sixty per cent of the price will be paid in Red Hat shares and the rest in cash.

The press release says JBoss has modelled its business on Red Hat's subscription model as well as sharing its committment to open source software. JBoss has been at the centre of rumours of an imminent sale for some months. Oracle was one rumoured suitor.

JBoss CEO Marc Fleury said: "By joining forces with Red Hat, we expect to be able to provide enterprises with 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."

The takeover is subject to the usual conditions, but is expected to close in the first fiscal quarter ending May 2006. It should have no effect on Red Hat's earnings and cash flow for the year.

Red Hat believes the deal will accelerate the move towards service-oriented architecture.

Visit Red Hat for the whole press release here. ®

alert Send corrections

Opinion

WWI French tank picture via Shutterstock
Vinod_Khosla

Chris Mellor

A VC with startup agenda slams established suppliers. Surprised? Neither were we
ZenPad_RealRacing
Boy writes a letter to Santa. Pic via Shutterstock

Kat Hall

Cornwall's win over BT should be a cautionary relationship tale

Features

Eclipse image via Shutterstock
The Azure Portal: Microsoft is betting on cloud for its future business
container_ship_hamburg_shutterstock_648
Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire