IBM has announced plans to acquire software maker Red Hat Inc for $33.4 billion. This is the biggest acquisition in the history of software takeover.
IBM’s Chairman Ginni Rometty shared that this is a game-changing acquisition and will change everything about the cloud market. “IBM will continue to grow its dividend and neither company will cut jobs after the deal,” she said.
Rometty had been trying to steer the technological giant toward the cloud, artificial intelligence, and security software for quite a few years.
The Red Hat purchase will give IBM an immediate boost in revenue along with new software products to sell to a global audience.
Red Hat makes software and services on the open source Linux operating system. The business is expected to attract $3 billion for the first time in 2018. IBM with a market valuation of $114 billion has seen a continuous decline since 2012.