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IBM's Red Hat acquisition: Here's what the mega deal means for India

The IBM-Red Hat deal is expected to give the new entity more teeth against AWS, Google, Microsoft and VMware in the hybrid cloud space.

October 30, 2018 / 06:08 PM IST
10 | Flipkart (Image: Reuters)

10 | Flipkart (Image: Reuters)

IBM on October 28 made its biggest-ever acquisition- that of open source software company Red Hat for $34 billion, and the deal could have some impact on the India operations of the combined entity, feel experts.

Calling the deal a "game changer", IBM chief executive Ginny Rometty said in a joint statement with Red Hat that it will make IBM the world's "#1 hybrid cloud provider".

Red Hat has helped EPFO and the BSE in revamping their data infrastructure and its clientele includes the likes of National Stock Exchange (NSE), Aadhaar, GST, Life Insurance Corporation of India (LIC), SBI Insurance and most core banking services across India.

IBM will pay cash to buy all shares in Red Hat at $190 each, premium of 63 percent to Red Hat's closing share price of $116.68 on October 26, before the deal was announced.