Red Hat snaps up consulting firm

The acquisition of Atlanta-based Planning is part of Red Hat's strategy to profit by providing services for the open-source Linux operating system, which is available for free or a very low cost. Red Hat has been concentrating on comparatively basic services such as technical support for Linux and automated Red Hat Network management software, while Planning offers more sophisticated consulting services.

Red Hat (rhat), based in Research Triangle Park, N.C., said the Planning acquisition was made through a stock swap worth $47 million and accounted for as a pooling of interest.

With the acquisition, Red Hat will gain roughly 200 engineers and consultants whose expertise lies in helping customers design, install and run their computers and networks. Planning's clients include AT&T, Home Depot, Delta Air Lines, BellSouth and several government agencies. Planning, founded in 1992, has not been a Linux-specific company. --Melanie Austria Farmer, Special to ZDNet News