Red Hat to Be Largest Linux Company

Behind-the-scenes deal-making positions the OS upstart for its battle with Microsoft.

Red Hat announced Monday that it will acquire privately held Linux company Cygnus Solutions for $674 million, creating what Red Hat estimates will be the largest open-source company worldwide.

Red Hat expects the merger to close by January 27 next year, subject to the approval of Cygnus shareholders and the usual regulatory concerns, according to a company statement released Monday. The transaction will be a stock-for-stock merger, and the $674 million price is based on Red Hat's Friday closing price.

The aim of the acquisition is to boost Red Hat's distribution of the Linux open-source code operating system and Linux-based applications, Red Hat said in the statement.

The combined company will be headed by Matthew Szulik, Red Hat's president, who will become both president and chief executive officer of the new entity.

Red Hat last month signed a bundling deal with Dell Computer for the PC vendor to offer the option of preloading Red Hat Linux on its server offerings.

Would you recommend this story? YES NO

Recommend:
0 Comments

Subscribe to the Daily Technology News Newsletter - 7 days a week

See All Newsletters »

Lenovo Laptop Deals

IdeaPad U300s If there's a laptop that deserves the moniker "Ultrabook" it's the Lenovo IdeaPad U300s.
Buy now direct from Lenovo
ThinkPad X220 Fast and light, with great input ergonomics and battery life, this powerhouse ultraportable is best-of-breed.
Buy now direct from Lenovo
ThinkPad T420 Just about every IT person we know swears by the T series--for their clients and themselves.
Buy now direct from Lenovo

Name	City

Address 1	State	Zip

Address 2	E-mail (optional)