IBM initially announced the transaction in October 2018 and the dealâs completion allows both firms to offer an open source technology-based hybrid multicloud platform designed to help enterprises deploy and manage applications and data on public and private clouds and on-premises, the companies said Tuesday.
Ginni Rometty, IBM chairman, president and CEO,Â said IBM and Red Hat will help businesses oversee and secure hybrid multicloud systems as they carry out their information technology modernization efforts.
âJoining forces with IBM gives Red Hat the opportunity to bring more open source innovation to an even broader range of organizations and will enable us to scale to meet the need for hybrid cloud solutions that deliver true choice and agility,â saidÂ Jim Whitehurst, Red Hat president and CEO.
Whitehurst will continue to lead Red Hat and report to Rometty as part of IBMâs senior management team.
Red Hat will run as a distinct unit under IBMâs cloud and cognitive software segment, maintain the neutrality and independence of its open source heritage and keep its headquarters in Raleigh, N.C., facilities, practices and brands.
Red Hat reported $934M in revenue for the first quarter of fiscal 2020 in June and its acquisition is expected to add about two points of compound annual revenue growth to IBM over a term of five years.