IBM completes acquisition of Red Hat for $34 billion which was announced last year

As IBM announced in a major breakthrough last year that it is acquiring Red Hat, that deal has now been completed. IBM has finally acquired Red Hat for $34 billion which is because IBM is looking to expand its cloud computing business. It is worth noting that while IBM announced the news of this deal in October, it was its biggest deal in the 100-year history.

Ginni Rometty who is the Chief Executive at IBM has taken IBM to faster-growing segments such as cloud, software and services and away from traditional hardware which IBM was originally known for. However, it has to be said that the company is handled well and the credits go to its management as well.

In an interview earlier this year, Rometty had discussed the ideas regarding this deal and its customers wanted to “move mission-critical work” to the cloud while also adding that “We have all the critical parts,” once this deal was made official.

IBM acquires Red Hat

While talking about the advantages of cloud technology, IBM’s Chief Executive said that customers want a mix of private and public cloud applications. She says that customers look at the IT department and say that they can’t throw all out and rebuild it so a mix is needed “with one platform across it.”

Some of the major examples of IBM’s cloud customers are companies such as Morgan Stanley and Delta Air Lines which Rometty cited as well. Delta Air Lines’ Chief Executive also said that they have been “working with both IBM and Red Hat for years” and added that this deal “will be an essential part of our digital transformation.”

Now, the only hurdle in finalizing the deal for IBM to acquire Red Hat was approval from US’ regulators as well as European Union regulators. Both of which were won by IBM in May and June respectively. It is revealed that IBM has agreed to pay Red Hat $190 per share in this deal.