Posted on 04/10/2006 10:22:06 AM PDT by N3WBI3
Red Hat Signs Definitive Agreement to Acquire JBoss Open source leaders agree to join to drive down the cost of developing and deploying web-enabled applications
RALEIGH, NC - April 10, 2006 - Red Hat (NASDAQ: RHAT), the world's leading provider of open source solutions to the enterprise, today announced that it has entered into a definitive agreement to acquire JBoss, the global leader in open source middleware. By acquiring JBoss, Red Hat expects to accelerate the shift to service-oriented architectures (SOA), by enabling the next generation of web-enabled applications running on a low-cost, open source platform.
"It is at Red Hat's very core to help unlock the power of open source and open communities to innovate across industries, geographies and economies," said Matthew Szulik, Chairman and CEO of Red Hat. "Red Hat and JBoss are fully aligned around the belief that the open source development model continues to change the economics of enterprise IT in favor of the customer, and we truly believe in the potential of software innovation, once freed from the fetters of proprietary development."
Red Hat will acquire JBoss for approximately $350 million in initial consideration, plus approximately $70 million subject to the achievement of certain future performance metrics. The transaction consideration is composed of approximately 40% in cash and 60% in Red Hat common stock. The acquisition is expected to be completed around the end of Red Hat's first fiscal quarter (May 2006), subject to customary closing conditions, including regulatory approval. The low-cost on-ramp to SOA
The adoption cycle for new technologies is littered with early adopters, who spent millions of dollars subsidizing "new" platform software that never lived-up to the hype. JBoss has shattered that model by providing innovative, standards-based middleware solutions at a low cost, to enable mainstream customers to develop and deploy next-generation, service-enabled applications much sooner than previously expected. According to Gartner, Inc., the Application Integration and Middleware and Portal (AIM) markets for license revenue is preliminarily estimated to more than $6.5 billion in 2006. Paired with Red Hat's proven portfolio of enterprise solutions, Red Hat believes the combination, once consummated, will help accelerate the shift to SOA by making innovative, powerful solutions available to developers and customers that seek to lower development and deployment costs. The Common Bond of Open Source
With each committed to advancing open source software and its collaborative development model, Red Hat and JBoss have been recognized as open source leaders. The large and vibrant communities around Linux and JBoss prove that the open source development model creates innovative, quality software, while providing a flexible and low cost model for customers. This acquisition is expected to accelerate enterprise adoption of open source infrastructure, and broaden the entire market opportunity for existing and new Red Hat and JBoss partners who are building value-added enterprise solutions. A complete fit - business model, channels, service delivery, and culture
JBoss has modeled it's business after Red Hat's proven subscription model - services and support, delivered through an online network. Red Hat provides established channels and global service delivery capability trusted by the enterprise. JBoss adds enterprise-proven middleware technology, community leadership, and a strong developer brand to Red Hat - a tight fit of business model and service delivery model. JBoss management chose Red Hat because it aligns to the vision of JBoss - delivering customer value by simplifying development, reducing cost barriers for adoption, and making it safer for use in mission-critical deployments by providing expert support services and advanced management tools.
"The union of these two companies will demonstrate the benefits of a pure open source play," said Marc Fleury, CEO of JBoss. "Our customers are increasingly standardizing their infrastructures on open source technologies and want a stable and trusted global open source vendor to support them. By joining forces with Red Hat, we expect to be able to provide enterprises the largest offering of open source solutions, a global services network staffed by technology experts, and a large and vibrant eco-system of certified products and services. This is a winning combination that we believe will further expedite the proliferation of open source in the enterprise, which has been our mission since day one."
Red Hat believes that the acquisition will be slightly dilutive to its quarter ending August 31, 2006, but neutral to earnings and cash flow for the full fiscal year. The transaction is expected to be accretive to both earnings and cash flow in the next fiscal year ending February 28, 2008.
For more information please visit http://www.redhat.com or http://www.jboss.com. Red Hat will be host a press/analyst webcast today at 9:15am EST. To access the webcast, please visit http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=67156&eventID=1292560. About Red Hat, Inc.
Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. The most trusted name in open source, CIOs and other senior-level IT executives have ranked Red Hat as the industry's most valued vendor for two consecutive years in the CIO Insight Magazine Vendor Value study. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com Forward-Looking Statements
Any statements in this press release about future expectations, plans and prospects for the Company, including statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the factors discussed in our most recent Quarterly Report on Form 10-Q filed with the SEC (a copy of which may be accessed through the SEC's website at http://www.sec.gov), reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures and the viability of the Internet. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release.
LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.
We know, because you prefer products licensed under that whacko leftist than anything else, just as we're seeing here.
"If you redistribute it. If you do not, you are under no obligation to give any source code to anyone."
Does not come close to meaning what he says it does..
ya know, you'd think I'd expect by now, but every instance of you point out your lack of comprehension skills just amazes me.
Get real, he was claiming Red Hawk wasn't distributing it when the whole thread was a PR release from the vendor announcing they were. And like you, who has never admitted the lies you made that all support for Windows 2000 was ending, he refuses to admit it. It's what you boys do, you lie constantly to push this GNU crap on us.
You said if you redistribute it, you have to release the source code.
I said, "Exactly. If you redistribute it."
So, I agree with you, and you call it a lie?
You've wrangled this around for days now, and it still doesn't say what you want it do. Give it up.
Okay, okay...
*pats GE on the head*
You'll say whatever you can to get me to pay attention to you, won't you sweetie?
Yeah, you know, the key phrase that would prove his point doesn't exist: a comment where I said they weren't distributing it. He can't find it, so he has to twist words to try to make up a lie, and he has to go back months to just find something which might be a little ambiguous (although not to a person with common sense).
Contrast that with the GE Lie List, where the endless lies are obvious to anyone at a glance. Hilarious.
Here's my criteria that constitutes something for the list:
"It was an obvious lie, because you were contending that they didn't have to release the source code to China and every other communist government on earth..."
Not so, because I said, "If they distribute it..." not, "They aren't distributing it." See how that works?
You see, IF is a phrase which points to a variable. It doesn't point to a definitive condition, and I didn't specify that because I assumed you knew the answer, i.e., that Concurrent WAS in fact distributing RedHawk. Shame on me for giving you credit for understanding this.
I guess I should just speak to you in the simplest possible terms about the most banal subjects so you don't get confused. Maybe I'll have to learn about monster trucks or the Dukes of Hazzard so I can converse with on a level to which you are accustomed.
Again, you lie. I have stated that I prefer products based on their fitness for a particular circumstance. Whether a product is under the GPL is irrelevant. Whether a product is open source in general can have an impact on the decision, depending on whether modification is necessary. I also trust open source encryption products more, since they can be publicly peer reviewed for backdoors and weaknesses.
My question: Would he take the same care with us?
For example, it's clear I didn't lie about Concurrent. Despite that fact, he's twisted my words so many ways to make them say what he wants that it's obvious his intention is not the pursuit of the truth, but rather defamation of character.
And, in fact, all we're doing with the lie list is posting his own words, and letting all who care to make their own judgement. If they're not lies, then they're simply things that he's said, and I don't see any harm in that.
I say he can live and die by his own definition, but if you guys disagree, we can define "lie" by a more rigid standard.
Regardless, tee-ball practice starts in a hour. Grown ups vs. kids tonight...wish me luck!
"If you redistribute it. If you do not, you are under no obligation to give any source code to anyone."
Means RedHawk is not redistributing code?
Good luck. You're not having any with the kid around here.
It's only so he can't claim unfairness.
Yes that he said when he said "If you redistribute it. If you do not, you are under no obligation to give any source code to anyone.".. Do you know what 'if' means?
you claimed they weren't distributing it at all.
You have yet to point at a post where he says that..
AR has said often that his favorite lices is the MPL which has nothng to do with stallman..
Absurd, his "if" was his contention it wasn't happening, just as he indicated on his previous post.
Liars and leftists, hand in hand here.
right?!?
LOL!!!!!!!!!!!!!!
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