Articles [Show All]
Coming Soon
|
Red Hat scoops up JBoss
April 10, 2006, 7:31 pm |
http://news.zdnet.com/2100-3513_22-6059293.html?tag=nl.e589
Linux distributor Red Hat said on Monday that it signed an agreement to
buy open-source company JBoss for at least $350 million, a move that
expands Red Hat's product line and adds to its growth potential.
The transaction is 40 percent cash and 60 percent Red Hat stock, with an
additional $70 million owed, subject to financial performance. Red Hat
said the deal, which is expected to close next month, will add to the
company's earnings next year.
In a statement, Red Hat CEO Matthew Szulik said the two companies'
business models and beliefs are "fully aligned." Both Red Hat and JBoss
charge customers a subsciption fee for products and ongoing support,
rather than an up-front license fee.
"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," Szulik said.
With the acquisition, Red Hat gains a popular open-source Java
application server, which is used for running custom business
applications written in Java, and a more substantial offering for Java
developers. JBoss is assembling a suite of open-source Java middleware,
including a portal, messaging and a transaction server.
Red Hat currently sells support for a competing open-source application
server, called Jonas, from the France-based consortium ObjectWeb. Red
Hat and JBoss had tried to come to terms on a partnership around the
JBoss application server but were unable to, JBoss executives have said.
Red Hat's move ends months of speculation over a possible acquirer for
JBoss, which has seen rapid growth in the past two years and had become
a likely takeover candidate.
Two weeks ago, JBoss founder and CEO Marc Fleury said that given the
company's strong finances, the next step for the company "will probably
be equity for an IPO or the right M&A."
For a growing number of open-source start-ups and their investors, the
$350 million acquisition number is a validation of the open-source
business model and an attractive payout. JBoss was largely self-funded
and took in $10 million in venture investment in 2004.
--
Regards
Vinay
Mob: 9422113939
------------------------------------------------
Vinay Yadav vinayRas Infotech
www.vinayras.com Nagpur, India
------------------------------------------------
Linux Consultant & PHP/MySQL Developer
------------------------------------------------
|
|
