Red Hat Signs Definitive Agreement to Acquire ManageIQ
Dec 26, 2012 (Close-Up Media via COMTEX) --
Red Hat, Inc., a supplier of open source solutions, announced that it has entered into a definitive agreement to acquire ManageIQ, a provider of enterprise cloud management and automation solutions that enable organizations to deploy, manage and optimize private clouds, virtualized infrastructures and virtual desktops.
With the addition of ManageIQ technologies to its portfolio, Red Hat will expand the reach of its hybrid cloud management solutions for enterprises.
According to a release, Red Hat has agreed to acquire ManageIQ, a privately-held company, for approximately $104.0 million in cash. The closing of the transaction is subject to customary closing conditions, including approval by the stockholders of ManageIQ.
As an existing member of the Red Hat Enterprise Virtualization Certified Partner program, ManageIQ has worked closely with Red Hat to provide customers with unified monitoring, management and automation solutions which reduce the cost and complexity of enterprise clouds. ManageIQ's Hybrid Cloud Operations Management technologies complement Red Hat's existing cloud and virtualization management tools - Red Hat CloudForms and Red Hat Enterprise Virtualization - by providing integrated lifecycle management of activities such as server and storage provisioning, workload optimization, policy-based compliance, chargeback, virtual machine lifecycle management, discovery and control, and analytics across heterogeneous private clouds and virtualized datacenters.
With the addition of ManageIQ, Red Hat's open hybrid cloud management solutions will include:
-Red Hat CloudForms: a hybrid cloud Infrastructure-as-a-Service (IaaS) solution that enables the management, brokering and aggregation of capacity across various virtualization and cloud providers as well as the management of applications across hybrid clouds.
-Red Hat Enterprise Virtualization: a virtualization management solution that is an ideal virtualization substrate for organizations to build cloud environments in terms of performance, security and value.
-ManageIQ's Hybrid Cloud Operations Management Tools: a cloud operations management solution that provides enterprises operational management tools including monitoring, chargeback, governance and orchestration across virtual and cloud infrastructure such as Red Hat Enterprise Virtualization, Amazon Web Services, Microsoft and VMware.
The acquisition is expected to have no material impact to Red Hat's revenue for its fiscal year ending Feb. 28, 2013. Management expects that operating expenses (excluding the impact of stock-based compensation and the amortization of acquisition-related intangible assets) will increase by approximately $2 million per quarter as a result of the transaction, and stock-based compensation and amortization expense will increase by approximately $2 million per quarter.
Paul Cormier, president, Products and Technologies, Red Hat, noted, "Industry and customer response to Red Hat's vision for the open hybrid cloud has been overwhelmingly positive because it offers the best of both worlds: the ability to tap into the public cloud when and where it makes sense, while leveraging existing investments for cloud infrastructure. For enterprise cloud initiatives, effective cloud management is critical. ManageIQ offers robust features, including orchestration, policy, workflow, monitoring and chargeback, that deepen Red Hat's cloud management capabilities and bring the promise of open hybrid cloud a step closer for the industry."
Joe Fitzgerald, Chief Product Officer and co-founder, ManageIQ, said, "We are very excited to be joining Red Hat. Our strong virtual and cloud management solutions, highly differentiated technology and experienced team are a perfect fit with Red Hat. We share a common vision of cost-effective, open and automated deployment and management of enterprise IT cloud resources."
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