Blog: Pete Loshin

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Red Hat Scoops JBoss

Red Hat announced that their purchase of JBoss was a done deal.

Mr. Ellison, read it-- Red Hat Signs Definitive Agreement to Acquire JBoss--and weep.

The rumor mill had Oracle looking to buy JBoss for $200 million, but back n February JBoss boss Marc Fleury, who said the company was not for sale, was also said to be looking for at least $400 million in any sale. Red Hat's press release spelled out the terms, under which Fleury seems to be likely to get what he wanted:

"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."

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