IBM’s 2019 acquisition of Red Hat was valued at about $34 billion.
IBM announced the transaction in October 2018 and completed it in July 2019. Red Hat shareholders received $190 per share in cash, and the deal was valued at approximately $34 billion including debt. Red Hat continued to operate as a distinct unit within IBM’s hybrid-cloud division.
Red Hat is best known for enterprise open-source software, particularly Red Hat Enterprise Linux and OpenShift. IBM said the acquisition would strengthen its ability to help customers run applications across private data centers and multiple public clouds. This strategy became central to IBM’s shift toward hybrid cloud and consulting services.
The transaction was one of the largest software acquisitions in history. It is separate from IBM’s earlier sale of its personal-computer business to Lenovo in 2005. IBM’s market value reflects a mature technology company whose businesses include software, consulting, infrastructure, and research.