Acquisition of Red Hat by IBM

Acquisition of Red Hat by IBM. Presented By: ZIANG ZHU.

Introduction to Mergers and Acquisition. M&A refers to the combination of two or more companies through the purchase, sale, or consolidation of assets, equity, or operations. There are various types of mergers and acquisitions, including horizontal, vertical, and conglomerate mergers. Mergers and acquisitions include multiple stages, such as strategic planning, target identification, valuation, negotiation, and integration..

Company Profile. IBM is a global leader in the information technology industry, having a presence in more than 170 countries. Red Hat is a software solutions company headquartered in Raleigh, North Carolina. IBM become an industry leader in various areas, including but not limited to: computer hardware and software; middleware; cloud computing; cognitive computing; and the Internet of Things ( IoT ). Red Hat focuses on offering open-source software solutions and uses a community-driven approach to develop and offer numerous technologies, such as operating systems, middleware, cloud, mobile, and storage solutions..

Red Hat Acquisition Process. IBM's acquisition of Red Hat was a carefully planned move influenced by a number of factors, including IBM's 20-year history of attempting to dominate the web area and supply clients with complementary services. The acquisition of Red Hat by IBM involved multiple steps, such as strategic planning, target identification, valuation, negotiation, and integration. IBM had to look at the current industry trends, research and study the pros and cons of creating this part of the whole, settle their differences, and usher in a new age for digital technology and cloud services..

Defense Mechanism and Takeover Tactics Employed..

Conclusion. The acquisition of Red Hat by IBM was a strategic move that allowed IBM to expand its product and service offerings, access Red Hat's open-source software solutions, and obtain a competitive edge in the technology industry. By agreeing to be acquired by IBM, Red Hat was able to preserve its autonomy while gaining access to the latter company's resources and clientele. Both firms employed a variety of defense mechanisms and takeover strategies. It was a successful transaction that was carefully planned and implemented, and it is an excellent example of the importance of M&A in the corporate world..