Linux supplier Red Hat is buying open-source middleware company JBoss for $350m (£205m) to expand its product portfolio.
Red Hat will pay a mixture of shares and cash for JBoss, in a deal it aims to complete next month.
Red Hat chief executive officer Matthew Szulik said the two companies were a good marriage, as both charge customers subscription fees for products and ongoing support, instead of up-front license fees.
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He said, “The open-source development model continues to change the economics of enterprise IT in favour of the customer.”
The acquisition would mean Red Hat gaining a popular open-source Java-based application server. JBoss’ solutions are used for running custom business applications and further Java development.
JBoss is currently developing a middleware suite that includes a portal platform, messaging technology and a transaction server.