Red Hat to Acquire JBoss

A while back I wrote a quick post saying that Oracle acquired JBoss for $485 million. In the interests of grading myself and my sources, this one was wrong. It was announced today that Red Hat is acquiring JBoss for $350 million in cash and stock, and a $70 million earn out on top of that making the total deal worth $420 million.

Regarding the breakup of the deal with Oracle, the intel that we gathered on it suggested that Fluery insisted on an expansive role within Oracle after the proposed acquisition was completed and Ellison balked at this, which is no surprise. There has also been some talk that Oracle is getting price sensitive and may have come back with a lowered offer (something Demandtec has recently experienced as well). At any rate, I’m pleased that JBoss is going to end up with a true open source company, and also because SAP has a position in RHAT that we gained following the acquisition of Sistina.

In my original post on this I said that I gave the rumor an 85% probability, which in retrospect was obviously too high.

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2 thoughts on Red Hat to Acquire JBoss

  1. “Fluery insisted on an expansive role within Oracle ” – OMG, anyone in the right mindset should take the money and run or try to stay as far from Darth Ellison as they can:-)

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