The Company IBM's Buying For 34 Billion Dollars
IBM in October agreed to buy Red Hat, the company's biggest acquisition in its more than 100-year history.
IBM agreed to pay $190 a share for Red Hat, representing a 63 percent premium.
International Business Machines Corp said on Tuesday it has closed its $34 billion acquisition of software company Red Hat Inc as it looks to ramp up its cloud computing business.
Underscoring the drive into high-margin businesses, IBM in October agreed to buy Red Hat, the company's biggest acquisition in its more than 100-year history.
Ginni Rometty, IBM chief executive since 2012, has steered the company toward faster-growing segments such as cloud, software and services
The company, which won approval for the purchase from EU regulators in late June and U.S. regulators in May, agreed to pay $190 a share for Re
d Hat, representing a 63 percent premium
IBM said Red Hat will continue "to build and expand its partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud and Alibaba."
Since 2013, IBM's cloud revenue as a percentage of total revenue has grown six-fold to 25 percent. In the 12 months through the first quarter of 2019, cloud revenue exceeded $19 billion.
Red Hat is expected to contribute approximately two points of compound annual revenue growth over a five-year period, IBM said...
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