Red Hat, Inc. (NASDAQ:RHAT), the leader in open source Internet infrastructure solutions, announced today that it has signed a definitive agreement to purchase privately-held WireSpeed Communications Corporation. Under the terms of the agreement, Red Hat will issue 1,531,232 shares of Red Hat common stock in exchange for all of the outstanding securities of Huntsville, Alabama-based WireSpeed. Red Hat may issue additional shares based upon the future performance of WireSpeed. The transaction will be valued based on an average closing price of Red Hat's common shares for the five-day period ended June 15, 2000. The acquisition will be accounted for as a purchase and is expected to be completed by July 31, 2000, subject to customary closing conditions.
International Data Corp. (IDC) research predicts that by 2002, there will be more than 55 million handheld and notebook-style information appliance devices and that by 2005, shipments of these appliances will exceed shipments of PCs. Connecting these devices to the Internet and private networks will be essential. WireSpeed is a leading developer of network and telecommunications components for embedded systems software. WireSpeed's clients include semiconductor, Internet device and industrial control leaders, including companies like Hewlett-Packard, Interphase, NETsilicon, STMicroelectronics and Time Domain Corporation. WireSpeed will become part of Red Hat's Client Services Group---the industry's largest source of custom Open Source development expertise in embedded, networked and post-PC devices. Matthew Szulik remains president and CEO of Red Hat.
"The addition of WireSpeed's embedded development expertise helps Red Hat continue to meet the tremendous demand for embedded development," said Matthew Szulik, president and CEO of Red Hat, Inc. "Wirespeed's expertise in telecommunications and networking for embedded systems also strengthens Red Hat's position as the technology and market leader for Open Source Internet Infrastructure solutions ranging from powerful servers to the smallest embedded devices."
In January, 2000, Red Hat acquired Cygnus Solutions, Inc., a top provider of Open Source software, development tools, engineering services and developer support for a variety of desktops, client/server systems, real-time operating systems (RTOS) and embedded, post-PC platforms. Red Hat's Client Services Group provides custom engineering services to top companies worldwide, helping them quickly create and deploy next-generation Internet infrastructure solutions, including appliances, handhelds and other post-PC and deeply embedded devices. With the addition of Cygnus and WireSpeed, Red Hat's Client Services Group now delivers more than 100 next-generation software developers.
"Red Hat has a tremendous vision, expertise and market lead in creating a whole new generation of powerful, reliable devices running Open Source solutions," said Andrew Bailey, President of WireSpeed. "The combination of WireSpeed and Red Hat will help companies bring a new paradigm of post-PC, Open Source computing to market more quickly."
WireSpeed is a leading developer of communications software for embedded systems. Harnessing the power of Linux, WireSpeed's customized solutions act as a catalyst for expediting the growth and innovation of next-generation Linux-based networked products. WireSpeed's expertise complements existing in-house resources and allows companies to focus on core competencies, accelerating time-to-market and reducing development costs. WireSpeed ports Linux to various architectures (traditional microprocessor and DSP) and crafts network drivers to get customer devices connected to ATM, xDSL, Ethernet, or analog networks. WireSpeed provides solutions for many industry leaders in the semiconductor, Internet device and industrial control markets.
About Red Hat, Inc.
Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com
There is no default locale or translation available for this content.
Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.
LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.
- About Red Hat
Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.
- Forward-Looking Statements
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.