Linux supplier Red Hat has completed the acquisition of open source middleware firm JBoss in a deal worth £187m, plus an extra £38m if future sales targets are met.
The deal will bring together Red Hat's enterprise infrastructure portfolio with standards-based middleware technologies, in a move the companies say will help accelerate the shift to open source service oriented architectures.
The acquisition will cause waves among software suppliers, with the creation of a major open source firm on a “collision course” with Oracle and IBM, according to Goldman Sachs.
The investment banking and research firm said the acquisition “begins Red Hat’s migration up the infrastructure software stack and leads it into direct competition with Oracle and IBM, two important partners of Red Hat”.
JBoss will now become a division of Red Hat, with founder and former chief executive Marc Fleury becoming senior vice-president and general manager of the new division.
Red Hat chief executive Matthew Szulik said, “Red Hat's acquisition of JBoss reflects a desire by our global customers to accelerate and expand the use of open source in the enterprise. The innovation and value of the open source platform continues to transform the performance of the twenty-first century enterprise."