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.
But, you see, I also chose Windows, just like you...
Maybe it was a mistake. But I'm not really sorry since only leftists were accidentally insulted.
Something pretty unrelated to Stallman, since he specifically refers to his commie clones as "GNU's NOT Unix". And you've never have explained why you can't just use Unix, instead of Stallman's commie clones. You tried by saying they weren't free, which of course was a lie.
But you still never told me how I'm supporting Stallman.
Name one benefit Stallman gets from me having Linux on my computer, especially after I got it for free and make no contributions back.
There's one for the hypocrisy list.
OSS companies can make money
OSS companies do hire developers
The LGPL is OK
Stallman does not call the shots in the OSS community
Solairs and OSX would not be what they are w/out OSS
Putting Software under the GPL does not give your code to FSF
The man is a FUD breaking machine today...
You haven't explained why we should.
If they're both free of charge, how does it hurt or help either Linux or Unix if I use their system, especially if I'm not the type who contributes anything back?
Your position is not clear.
How does a person downloading a Linux OS for free, and not contributing back to the community, support Stallman?
Likewise, how does downloading a Unix OS for free, and not contributing back to the community, support Unix?
Wont find too many freepers who will disagree with you on that, I think the guy is wacko
released under his license should be avoided if at all possible
Why? You yourself have provided evidence today that using the GPL in no way empowers stallman
but continue to push software under his license constantly.
Hey Bill gates himself has given millions upon millions to the leftist at the UN and you keep pushing software that is not only under a licnese he is responsalbe for but that gives him more money to give to the UN.
while I constantly condemn them.
Except in the case of Bill gates a rich leftist who you empower..
BS, even you have admitted (on rare ocassion) that Stallman is a radical leftist. Apparently that doesn't matter to you, using stuff licensed by radical leftists is just a part of your normal life. Actually, you go much further, and try to attack me for pointing it out to everyone, you want to keep it all on the hush hush.
"BS, even you have admitted (on rare ocassion) that Stallman is a radical leftist."
Believe me, sugar. That wasn't because of you.
You never answered my question.
Explain how downloading software free of charge and using it privately, as I do, supports the maker of the software or the license in any way.
LOL, you losers trying to compare the richest capitalist in the world, who regularly donates to the RNC, as an equal leftist to that Green Party whacko Richard Stallman who wants to tax us all for "free" software. Does Gates own website look anything like this?
http://www.stallman.org/archives/polnotes.html
George Sorros is also a pretty rich guy, are you trying to say only those on the right are wealthy? Who gives more money to the UN which is perhaps among the most anti-american organization in the world stallman or gates?
It makes you an obvious member of Stallman's "movement", not that you aren't already a full fledged card carrying memeber LOL. He uses dopes like you to build up his power, so that he boast his number of downloads to the people at the U.N. who created an entire new division to push his software on the rest of the world.
We've even seen you on here insisting that China and other potential US adversaries can't use Stallman's license to make competely free copies of software technology made here in the U.S., even incorrectly quoting his website when everyone knows that's exactly what Stallman wants.
You're just a mindless pawn of his, obviously, still here arguing on his behalf just like always.
Who knows, but we do know there are alternatives to both Gates and Stallman, being Sun Solaris and Apple OSX. You still haven't ever explained why you constantly push Stallman's crap on us when those two other alternatives exist.
Sun Solaris is free, and is even available in open source form if that's what you want. What's the matter, can't live your life without Stallman's license dominating your software? Why do you always defend a guy who you even admit is a whacko leftist?
An honest person would have said "Sorry, I was wrong." There's no "maybe," your statement was not only grossly factually incorrect, but used in a derogatory fashion.
And an honest and smart person would have looked it up first before writing it. The ONLY place info like that comes from is anti-OSS FUD, agenda-driven and no better than Stallman himself.
"He uses dopes like you to build up his power..."
haha! Hit a nerve, obviously. Not a part of any "movement" here, just wanna listen to music, surf the Net, and tinker a little bit. You're more obsessed with Stallman than I am.
"We've even seen you on here insisting that China and other potential US adversaries can't use Stallman's license to make competely free copies of software technology made here in the U.S., even incorrectly quoting his website when everyone knows that's exactly what Stallman wants."
Ok, sugarplum, where did I post this? Thread and post number?
Didn't have one? Didn't think so.
"He uses dopes like you to build up his power..."
Haha!
Just thanking you again for this chuckle.
"...his POWER!"...
hahahahahahahahaha!
...copyleftists!!!
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