IBM will acquire Raleigh-based software maker Red Hat for $34 billion, the two companies announced Sunday.
IBM will acquire all common shares of Red Hat for $190 per share, the companies said. Red Hat’s stock had closed at $116.68 a share Friday, down from a peak in June of about $175.
IBM, which has a campus in Research Triangle Park, says it intends to keep Red Hat based in downtown Raleigh. The company has more than 2,000 employees at its headquarters tower, making it one of the city’s largest employers. Red Hat has been downtown since 2013, when it moved its headquarters from N.C. State University’s Centennial Campus to the tower in 2013, bringing around 600 employees at the time.
Worldwide, the company had approximately 12,600 employees as of August 2018 and has a market valuation of $20.5 billion, Bloomberg reports.