IT company IBM bought software company Red Hat for $ 34 billion Both companies are American only. IBM said on Tuesday that such a cloud computing business could be increased. According to news agency Reuters, this is their biggest deal in IBM’s 108 year history.
IBM has got approval from American regulators in May and European Union Regulators in June for a Red Hat deal. Established in 1993, Red Hat is a Linux operating system specialized company. This is the most popular open-source software and has the option of Microsoft’s software.
IBM CEO Ginni Rometty has focused on moving the company forward in the rapidly growing cloud software and service segments, instead of trading hardware products. she became CEO in 2012. However focusing on new areas of IBM has not attracted new investors every time. Company revenue declined for a long time during the transition from computer hardware business.
However, compared to 2013, Cloud Revenue’s share of IBM’s total revenue has increased 25 times. By the end of the January-March quarter end, Claude’s revenues have reached $ 19 billion.
After completing IBM’s deal, Red Hat CEO Jim Whitehurst and his team will remain in the company. Jim will be involved in IBM’s senior management and reports to Ginni Rometty. The headquarters of IBM Red Hat will be held in North Carolina.