Red Hat signed a definitive agreement to acquire Ansible, a provider of IT automation solutions. The transaction is expected to close in October 2015, subject to customary closing conditions.
A provider of open source software solutions, Red Hat, stated that Ansible’s automation capabilities, together with Red Hat’s existing management portfolio, will help users to cut the cost and complexity of deploying and managing both cloud-native and traditional applications across hybrid cloud environments.
Red Hat said the acquisition is expected to have no material impact to its revenue for the third and fourth quarters of its fiscal year ending February 29, 2016.
Management expects that non-GAAP operating expenses for fiscal 2016 will increase by approximately $2.0 million, or $0.01 per share, in the third quarter and approximately $4.0 million, or $0.02 per share, in the fourth quarter as a result of the transaction.
Red Hat calculates non-GAAP operating expense by subtracting from GAAP operating expense. The estimated impact of non-cash share-based compensation expense is expected to increase by approximately $1 million for each of the third and fourth quarters.
Amortization of intangible assets is expected to increase by approximately $1 million for each of the third and fourth quarters, in addition to transaction costs related to business combinations, which are expected to grow by approximately $1 million in the third quarter.
The Red Hat management expects GAAP operating expense to increase for fiscal 2016 by approximately $5 million, or $0.02 per share, in the third quarter and approximately $6 million, or $0.02 per share, in the fourth quarter as a result of the transaction.
Recently, Red Hat announced that Verdipapirsentralen ASA (VPS), Norway’s national Central Securities Depository, has deployed a private, on premise Platform-as-a-Service solution based on OpenShift Enterprise by Red Hat.