IBM Made the Largest Software Acquisition for $34 Billion
The multinational IT company IBM has reportedly made the largest software acquisition. The company has acquired US-based software company Red Hat for $34 billion, including debt.
The company is expecting to diversify its technology hardware and consulting business into higher-margin products and services. This particular acquisition is by far IBM's biggest acquisition.
"The acquisition of Red Hat is a game-changer ... 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," IBM chief executive Ginni Rometty stated.
IBM, which has a market capitalization of $114 billion, will pay $190 per share in cash for Red Hat, a 62% premium to Friday's closing share price. IBM, which...