Red Hat (RHT) announced that it has entered into a definitive agreement to acquire ManageIQ, a leading provider of enterprise cloud management and automation solutions that enable organizations to deploy, manage and optimize private clouds, virtualized infrastructures and virtual desktops.
The approximately $104 million acquisition will allow Red Hat to expand the reach of its hybrid cloud management solution for enterprises. As an existing member of the Red Hat Enterprise Virtualization Certified Partner program, ManageIQ has worked closely with Red Hat to provide customers with unified monitoring, management and automation solutions. With ManageIQ the Red Hat hybrid cloud management portfolio will include CloudForms, Enterprise Virtualization, and ManageIQ hybrid cloud operations management tools.
"Industry and customer response to Red Hat's vision for the open hybrid cloud has been overwhelmingly positive because it offers the best of both worlds: the ability to tap into the public cloud when and where it makes sense, while leveraging existing investments for cloud infrastructure," said Paul Cormier, president of Products and Technologies at Red Hat. "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.”
Third Quarter Earnings
Red Hat also announced financial results for its fiscal year 2013 third quarter. It saw an 18 percent increase from last year in total revenue, with $343.6 million. Subscription revenue for the quarter was $294.2 million, up 19 percent.
"Strong execution, industry leading solutions and our ability to deliver a compelling ROI to our customers, all contributed to continued momentum and strong third quarter revenue growth in the face of a challenging global economic environment. Red Hat is benefiting from our position as a trusted vendor for IT," stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. "Since October of last year we have completed three acquisitions, and are announcing a fourth today to expand our portfolio of open source solutions and enlarge our addressable market. As our enterprise customers move to open, hybrid cloud architectures, we are addressing their needs with a clear roadmap based on industry-leading open source technologies."