Red Hat said Wednesday it has signed a definitive agreement to acquire eNovance, providers of open source cloud computing services, for $95 million.
eNovance has been a prominent figure in OpenStack, especially through its work with telecommunications companies. It's that experience, and its reputation of having a strong customer focus, that Red Hat said fueled the permanent coupling of the two companies.
Red Hat and eNovance first partnered in 2013 to deliver OpenStack implementation and integration services to joint customers, and expanded that partnership just last month to drive Network Functions Virtualization and telecommunications innovations into OpenStack.
The partnership now becomes much more intimate with the acquistion of eNovance, which has approximately 110 employees worldwide, with primary sites in Paris and Montreal. Red Hat will shell out €50 million in cash and €20 million in shares for the French company.
As for integration details, Red Hat said it intends to combine its product development activities and teams with that of eNovance to enhance Red Hat's OpenStack products and services.
Arun Oberoi, EVP of global sales and services at Red Hat, said in a statement:
eNovance's deep OpenStack expertise, combined with Red Hat's enterprise-class OpenStack offerings, including Red Hat Enterprise Linux OpenStack Platform and Red Hat Cloud Infrastructure, can be a game-changer as a growing number of global organizations turn to OpenStack for their cloud deployments.
Red Hat will also report its fiscal earnings Wednesday after the market closes.
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