Red Hat To Buy Inktank For $175 Mln

(RTTNews) - Red Hat, Inc. (RHT) said Wednesday that it has agreed to buy privately-held Inktank, a provider of scale-out, open source storage systems, for about $175 million in cash, subject to certain closing adjustments.

As part of the deal, Red Hat will assume unvested Inktank equity outstanding on the closing date and issue certain equity retention incentives.

The deal is expected to close in May.

Inktank's flagship technology, Inktank Ceph Enterprise, delivers world class object and block storage software to enterprises deploying public or private clouds, including many early adopters of OpenStack clouds. Combined with Red Hat's existing GlusterFS-based storage offering, the addition of Inktank positions Red Hat as the leading provider of open software-defined storage across object, block and file system storage.

Red Hat does not expect the deal to have a material effect on its financial performance for the first quarter of its fiscal year ending February 28, 2015. The company also reaffirmed its fiscal 2015 guidance, provided on its March 27 earnings call, for revenue, adjusted operating margin, adjusted earnings per share and operating cash flow.