Infotech Lead America: Red Hat is set to acquire ManageIQ, a provider of enterprise cloud management and automation solutions, for approximately $104.0 million in cash.
The acquisition of ManageIQ technologies will enable Red Hat to expand its hybrid cloud management solutions for enterprises.
“For enterprise cloud initiatives, effective cloud management is critical. ManageIQ offers robust features, including orchestration, policy, workflow, monitoring and chargeback, that deepen Red Hat’s cloud management capabilities and bring the promise of open hybrid cloud a step closer for the industry,” said Paul Cormier, president, Products and Technologies, Red Hat.
ManageIQ has worked with Red Hat to provide unified monitoring, management and automation solutions. ManageIQ’s Hybrid Cloud Operations Management technologies complement Red Hat’s existing cloud and virtualization management tools – Red Hat CloudForms and Red Hat Enterprise Virtualization.
The addition of ManageIQ will enable Red Hat to offer hybrid cloud management solutions including Red Hat CloudForms, Red Hat Enterprise Virtualization and ManageIQ’s Hybrid Cloud Operations Management Tools.
Red Hat expects that operating expenses (excluding the impact of stock-based compensation and the amortization of acquisition-related intangible assets) will increase by approximately $2 million per quarter as a result of the transaction, and stock-based compensation and amortization expense will increase by approximately $2 million per quarter.
“Our virtual and cloud management solutions, highly differentiated technology and experienced team are a perfect fit with Red Hat. We share a common vision of cost-effective, open and automated deployment and management of enterprise IT cloud resources,” said Joe Fitzgerald, chief product officer and co-founder, ManageIQ.
Meanwhile, Red Hat said its revenue for the quarter was $343.6 million, an increase of 18 percent from the year ago quarter. Subscription revenue for the quarter was $294.2 million, up 19 percent year-over-year. Net income for the quarter was $34.8 million compared with $38.2 million in the year ago quarter.