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With Red Hat, IBM expands its focus on cloud-native development for multiclouds

October 29, 2018 / JAMES KOBIELUS

For IBM Corp.the blockbuster acquisition of Red Hat Inc. is all about the cloud — many clouds, that is.IBM and Red Hat announced Sunday that the companies have reached a definitive agreement under which IBM will acquire all of the issued and outstanding common shares of Red Hat for $190 per share in cash and debt. This deal, which is the largest software acquisition ever by any firm, represents a total enterprise value of approximately $34 billion and a 63 percent premium over Red Hat’s preannouncement closing stock price.IBM is acquiring Red Hat to deepen its focus on helping enterprise developers to build containerized microservices to be deployed in private, public, hybrid and multiclouds. The acquisition, which is expected to close in the latter half of 2019, has been approved by the boards of directors of both companies, but is still contingent on Red Hat shareholder approval, regulatory approvals and other customary closing conditions.