STOCKHOLM (04/19/2000) - Linux vendor Red Hat Inc. today announced a definitive agreement to acquire privately held Internet performance management software and services provider Bluecurve Inc. in an all-stock deal valued at approximately US$37 million.
Under the terms of the agreement, Red Hat will issue up to 1,257,862 shares of its common stock in exchange for all outstanding shares in the Oakland, California-based Bluecurve, Red Hat said in a statement.
The transaction will be valued based on the average closing price of Red Hat's common shares over a five-day period ending April 24, according to the statement. Based on the $29.50 closing price of Red Hat shares on the Nasdaq exchange yesterday, the deal would be valued at more than $37 million.
Red Hat said it expects to close the acquisition by July. The deal is still subject to approval by Bluecurve shareholders and other customary closing conditions.
The addition of Bluecurve's Web-based performance management software will improve Red Hat's capabilities to help businesses proactively manage their Internet infrastructures, the company said.
Separately, Red Hat yesterday announced the opening of the Redhat.com Marketplace online store, aimed at offering customers access to products and services based on or supporting the company's distribution of the open-source Linux operating system.
Bluecurve, in Oakland, California, can be reached at +1-510-267-1500, or via the Web at http://www.bluecurve.com/. Red Hat, in Research Triangle Park, North Carolina, is at +1-919-547-0012, or at http://www.redhat.com/. The Redhat.com Marketplace can be found at http://www.redhat.com/marketplace/.