RedHat To Buy JBoss

WRAL Linux software developer and services provider Red Hat is acquiring open source provider JBoss in a deal worth up to $420 million. The companies announced the deal early Monday morning. Red Hat (Nasdaq: RHAT) is paying approximately 40 percent in cash and the rest in stock for JBoss. Wall Street embraced the deal, driving up Red Hat stock nearly 9 percent to close at $29.85. JBoss had long been rumored to be an acquisition target, with IBM having been reported as among the suitors. The company is privately held. JBoss, which was founded by Chief Executive Officer Marc Fleury, is backed by venture capital firms Matrix Partners, Accel Partners, Intel Capital and Bain Capital. “We are throwing our collective hats in the ring – no pun intended – to be the super company for independent open source development,” Fleury said in a conference call.