Red Hat, Bluecurve Pen Deal
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Bluecurve's software allow customers to simulate and measure the load that transactions and other user activity place on networks and appliations. That data can be used by businesses to more accurately plan and scale their infrastructure. Red Hat (RHAT) plans to use the software to create a new Web-based subscription service that will help companies build scalable Internet infrastructure.
Red Hat will issue up to 1.25 million shares of common stock in exchange for all outstanding Bluecurve equity. The transaction will be valued based on an average closing price of Red Hats common shares for a five-day period ending April 24. The deal is expected to close in July.
Matthew Szulik, RedHat's president and chief executive officer, said the acquisition of Bluecurve will help the company's customers better manage Linux servers.
The new Web-based offering will be launched on redhat.com.