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.
You must mean N3WBI3, the guy who maintains his own "open soruce" ping list, but proves he doesn't really believe in the free use of it since he whines if anyone uses for anything other than his normal leftist agenda.
Yeah, whatever.
Why DO you keep up with all these leftist sites? You link to Stallman.com 3 or 4 times a week, usually. Scary.
Trying to change the subject? Don't like it when the light hits you, cockroach?
We get the point you don't like OSS. Suit yourself.
Speaking of free republic who wrote the license its os is released under?
FR uses linux just like I do some. The obvious difference is, they've never pushed it on everyone with endless lies, never called me childish names for pointing out the obvious dangers, or tried to permanently ban my account like some of you losers have. If you boys would quit doing those things, we might get along fine too. Of course, with your life dedicated to pushing open source even if it takes constant lies, that's not about to happen.
Ive spoken my peace with you, tried to get along and discovered what a troll you really are I am many on these threads could live a lifetime without 'getting along with you' and hardly notice...
/s/I\ am/I\ and/g
"The obvious difference is, they've never pushed it on everyone with endless lies..."
Can't see how we push it on you, when you follow us from thread to thread, disrupting every time someone says "Linux".
"If you boys would quit doing those things, we might get along fine too. "
I remember the time N3WBI3 tried to make peace with you. It actually made you mad, and that's where I came to the conclusion that you were a hateful, sad little man. Based on that, I'm not about to extend an olive branch to have it slapped out of my hand. I couldn't care less how I get along with you, because you've already proved yourself unworthy of my respect through repeated (unsuccessful) attempts to assassinate my character. IOW, because of the way you conduct yourself, we are far past the point of ever being able to have civilized dialog on any subject, so you might as well shut up about it and accept your role as the house punching bag.
Also, it's worthless to hint that we could all get along with you if we do what you say, because your words, quite frankly, are meaningless, and even you disregard them from one day to the next.
"Of course, with your life dedicated to pushing open source even if it takes constant lies, that's not about to happen."
Facts are facts, no matter what you think of them. The only one on this thread that has been exposed as a liar is you.
Sleep well, sweetie. We'll mop the floor with you some more tomorrow.
LMAO!
???--you can't read regular expressions?
And remember this comment?
Could it mean that Dims understand being frugal with donators' ( and thus taxpayers') money by working smarter instead of just throwing money at what's popular?After having looked at this more since then, I think the Democrats attached themselves to open source for the same reason they attach themselves to anything -- pandering. Also, they, like you, mistakenly believe open source is about socialism, so of course they like it. It doesn't mean anything except to fanatics like you.Nah, too much of a stretch. Must just be an accident.
And look further and you'll see the same position I still have,
It's time to get the government to consider software purchases solely based on merit -- I want my tax dollars spent better. ... "You must prefer Open Source over anything else" is pretty stupid. I just want the government to go for the best price/performance ratioThis must have pissed you off, since you strongly believe in corporate welfare:
OSS fits my belief in small government and the complete absence of corporate welfare.From that and an earlier one, we can see I think the government should use OSS when possible to 1) save me money and 2) make sure released government documents can be read and/or used by anyone.
BTW, remember this bit about the zealots?
The movement has its fanatics, and I believe we have an equal dislike for them. Some of these people have not grown up to the point where they realize there is real business involved here.Oooh, fun, I get to see an old statement of yours, "Because it's so obvious how much code it is. It's all the code that was in AIX, that now is in Linux. Which is tons." We now know that SCO couldn't even back up most of its claims with file and line number once it was finally forced to do so by the court. The hearing to get most of their "evidence" immediately thrown out is soon.
And a really funny thing. Remember your idea that government-sponsored open source should only be usable by Americans? Here's me from way back then:
I would like some kind of a license rather than public domain, because then you can say "free for use and resale by Americans" or something to that end.
You said you only use GPL software because you have to. You don't have to be using Linux by posting on FR. You can stay true to your principles and stop using FR.
or tried to permanently ban my account like some of you losers have.
In case you haven't noticed, users don't have the power to ban other users. It is the moderators who have banned you in the past because of what you wrote.
Just laughing at his attempts at English. I think he admitted once it is his second language, but every time I try to find out he cries to the admins.
HA! Open source software like SE Linux and Beowulf obviously are fattening the government, as you well know. That leftist Stallman even calls for a "software tax" in his "manifesto".
The government needs an IT product. It can be done it three ways I can think of:
Now here's an interesting thing with #3. Anything the government creates is automatically public domain. So, technically, while the government may contribute to open source, those parts are public domain.
However, if the government hires contractors to program open source for #2, it can be assigned the copyright and really release it under an open source license. Thus the contractors get the money instead of it going to government employees, as is your preference due to your love of corporate welfare.
Don't get me wrong, contracting is fine. But you have said that contracing to Cray (and Cray is always expensive, especially back then) is better than some government employees (although they may have been contractors, we don't know) assembling some available boxes into a cluster. You prefer massive money be given to industry over a small amount of money internally spent to achieve the same result.
The closed source version of #2 is exactly the same, only it has some disadvantages compared to open source that is freely distributed:
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