Red Hat has announced that it has signed a definitive agreement to acquire eNovance, a provider of open source cloud computing services.
As per the release making the announcement, combined with Red Hat’s existing leadership in OpenStack, the addition of eNovance’s systems integration capabilities and engineering talent is aimed at meeting growing demand for enterprise OpenStack consulting, design and deployment.
Red Hat and eNovance first partnered in 2013 to deliver OpenStack implementation and integration services to joint customers, helping to accelerate adoption of Red Hat Enterprise Linux OpenStack Platform.
Most recently, in May 2014, the two companies announced an expanded collaboration to drive Network Functions Virtualisation (NFV) and telecommunications innovations into OpenStack, aimed at delivering the industry’s most complete, carrier-grade telecommunications offering based on Linux, Kernel-based Virtual Machine (KVM), and OpenStack.
Red Hat has agreed to acquire eNovance for approximately 50 million Euros in cash and 20 million Euros in shares of Red Hat common stock, subject to certain adjustments at closing. The transaction is expected to close in June 2014, subject to customary closing conditions.
Red Hat will update its guidance and the effect of the eNovance acquisition during its Q1 Fiscal Year 2015 Earnings webcast.
