Red Hat sets date for stockholders to vote on IBM merger
- 11 December, 2018 11:04
Open source solutions provider Red Hat has set a special meeting on 16 January for stockholders to consider and vote on IBM's proposed acquisition of the company.
On 28 October, IBM and Red hat announced an agreement and plan of merger which would see IBM acquire Red Hat for $190.00 per share in an all-cash transaction.
"The board of directors of Red Hat recommends that stockholders vote in favour of the merger with IBM," the company said in a statement on 11 December.
"Red Hat stockholders as of the close of business on the record date of 11 December 2018, will be entitled to receive notice of, and to vote at, the special meeting."
As previously reported, IBM unveiled plans to acquire Red Hat in a US$34 billion deal designed to bolster the tech giant's hybrid cloud capabilities.
“The acquisition of Red Hat is a game-changer,” said Ginni Rometty, CEO of IBM. “It changes everything about the cloud market.
“IBM will become the world's no.1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.
“Most companies today are only 20 per cent along their cloud journey, renting compute power to cut costs. The next 80 per cent is about unlocking real business value and driving growth.
“This is the next chapter of the cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimising every part of the business, from supply chains to sales.”
Rometty also said the acquisition brings together the “best-in-class” hybrid cloud providers, enabling companies to securely move all business applications to the cloud in the process.
Red Hat expects the transaction to close in the second half of 2019.
Red Hat will operate as a kind of “Switzerland” within IBM and maintain its commitment to open source at the conclusion of Big Blue’s takeover of the software company, according to Marco Bill-Peter, Red Hat senior vice president of customer experience and engagement.
Red Hat will function as an independent, distinct unit within IBM’s Hybrid Cloud team and maintain its commitment to open source principles, he said during the Red Hat Forum in Sydney in November.