Red
Hat, Inc., the world's leading provider of open source solutions,
today 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. With the addition of
ManageIQ technologies to its portfolio, Red Hat will expand the reach of its
hybrid cloud management solutions for enterprises.
Red Hat has agreed to acquire ManageIQ, a privately-held company, for
approximately $104.0 million in cash. The closing of the transaction is subject
to customary closing conditions, including approval by the stockholders of
ManageIQ.
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 that are
quick-to-deploy and easy-to-use, which reduce the cost and complexity of
enterprise clouds. 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 - by providing integrated
lifecycle management of activities such as server and storage provisioning,
workload optimization, policy-based compliance, chargeback, virtual machine
lifecycle management, discovery and control, and analytics across heterogeneous
private clouds and virtualized datacenters.
With the addition of ManageIQ, Red Hat's open hybrid cloud management solutions
will include:
- Red Hat CloudForms: a hybrid cloud Infrastructure-as-a-Service (IaaS)
solution that enables the management, brokering, and aggregation of
capacity across various virtualization and cloud providers as well as the
management of applications across hybrid clouds.
- Red Hat Enterprise Virtualization: a comprehensive
virtualization management solution that is an ideal virtualization
substrate for organizations to build cloud environments in terms of
performance, security and value.
- ManageIQ's Hybrid Cloud Operations Management Tools: a cloud operations
management solution that provides enterprises operational management tools
including monitoring, chargeback, governance, and orchestration across
virtual and cloud infrastructure such as Red Hat Enterprise
Virtualization, Amazon Web Services, Microsoft and VMware.
The acquisition is expected to have no material
impact to Red Hat's revenue for its fiscal year ending Feb. 28, 2013.
Management 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.
Supporting Quotes
Paul Cormier, president, Products and Technologies, Red Hat
"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. 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."
Joe Fitzgerald, Chief Product Officer and co-founder, ManageIQ
"We are very excited to be joining Red Hat. Our strong 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."