From the acquisition, Red Hat expects to accelerate the shift to service-oriented architectures (SOA), by enabling the next generation of web-enabled applications running on a low-cost, open source platform.
SOA expresses a perspective of software architecture that defines the use of services to support the requirements of software users. SOAs help businesses respond more quickly and cost-effectively to changing market conditions by promoting reuse and interconnection of existing IT assets rather than time consuming and costly reinvention. Market conditions include global and distributed development teams, and the growing open source community.
Red Hat will acquire JBoss for approximately $350 million, plus approximately $70 million subject to the achievement of future performance metrics. The transaction consideration is composed of approximately 40% cash and 60% Red Hat common stock. The acquisition is expected to be completed in May 2006.
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