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Red Hat to Acquire FeedHenry, Adds Enterprise Mobile Application Platform
FeedHenry will add mobile application services to OpenShift and Red Hat JBoss Middleware
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced that it has signed a definitive agreement to acquire FeedHenry, a leading enterprise mobile application platform provider. FeedHenry expands Red Hat’s broad portfolio of application development, integration, and Platform-as-a-Service (PaaS) solutions, enabling Red Hat to support mobile application development in public and private environments.
Enterprises continue to embrace mobile devices as the preferred way to engage and interact with customers, employees, and partners, and new enterprise application software development is increasingly focused on supporting mobile apps and devices. Industry analyst firm IDC expects 1.2 billion smart phones to ship in 2014, representing 19.3 percent growth over 2013.1 With this significant shift, mobile application platforms have become a critical requirement for efficient development and deployment of backend services for enterprise mobile applications. Cloud-based mobile application platforms such as FeedHenry enable enterprises to support enterprise mobile applications at scale – with centralized security, notification and integration services. IDC predicts the mobile application platform market will grow 38.7 percent compound annual growth rate (CAGR) from $1.4 billion in 2013 to $4.8 billion by 2017.2
Aligned with Red Hat’s open hybrid cloud strategy, FeedHenry enables enterprises to accelerate their mobile app development and backend integration via private clouds, public clouds, and on-premises. FeedHenry is an important addition to Red Hat’s JBossxPaaSforOpenShift strategy, announced in September 2013, providing a platform and services for mobile developers and applications. With its xPaaS services for OpenShift, Red Hat is delivering a rich set of enterprise application, integration and business process automation capabilities and services in an extensible open PaaS platform, and is well-positioned to enable accelerated development and deployment of next-generation enterprise applications and business processes in the cloud. Mobile application services are a key part of that vision and FeedHenry provides the security, policy management, synchronization, and integration features to support mobile applications.
Founded in 2010 as a spin out from the Telecommunications Software and Systems Group at the Waterford Institute of Technology, FeedHenry is a leader in mobile enterprise application platform technologies. By helping organizations accelerate development and collaboration on mobility projects, FeedHenry gives organizations greater agility, visibility, and efficiency. FeedHenry has a broad footprint, serving a customer base that includes Aer Lingus, Baystate Health, and O2 UK and Ireland, and partners such as Brillio, Court Square, Mubaloo, Rackspace, Telefonica, and UST. The company has offices in Waterford and Dublin, Ireland; Staines, England; and Burlington, Mass.
Red Hat has agreed to acquire FeedHenry, a privately held company, for approximately 63.5 million Euros in cash, subject to certain adjustments at closing. The transaction is expected to close in Q3 Fiscal Year 2015, subject to customary closing conditions.
Red Hat will update its guidance and the effect of the FeedHenry acquisition during its Q2 Fiscal Year 2015 Earnings webcast. The call is scheduled to begin at 5 p.m. EDT today and can be accessed by the general public at Red Hat's investor relations website at http://investors.redhat.com. A replay of the webcast will be available shortly after the live event has ended.
Craig Muzilla, senior vice president, Application Platform Business, Red Hat, and Cathal McGloin, chief executive officer, FeedHenry, will host a webcast to discuss this announcement tomorrow, Sept. 19, 2014, at 11 a.m. EDT. Following remarks, press and analysts are invited to participate in a live question and answer session.
“Since our inception, FeedHenry has embraced open technologies and the cloud for mobile development and management. We are excited to become part of Red Hat, the leader in open source enterprise solutions, and see this as confirmation of the combined power of mobile and cloud, the mass-market adoption of mobile application and MBaaS platforms, and the growing popularity of Node.js. By joining Red Hat, we now have an opportunity to bring our leading mobile application platform to a wider audience of global customers and partners, to help them optimize for the mobile-first world.”
Craig Muzilla, senior vice president, Application Platform Business, Red Hat
“The mobile application platform is one of the fastest growing segments of the enterprise software market. As mobile devices have penetrated into every aspect of enterprise computing, enterprise software customers are looking for easier and more efficient ways for their developers to build mobile applications that extend and enhance traditional enterprise applications. FeedHenry will help us enable customers to take advantage of the capabilities of mobile with the security, scalability, and reliability of Red Hat enterprise software."
"Building and deploying useful mobile apps is rapidly becoming a top concern for IT, as mobile apps bring competitive advantages to most businesses through improved information flow, faster decision making and ubiquitous access to key resources.3"
3Gartner: “Prioritize Mobile Application Development to Maximize Business Value,” April
2014, G00261751 (Richard Marshall, Jason Wong, Adrian Leow)
By joining Red Hat, we now have an opportunity to bring our leading mobile application platform to a wider audience of global customers and partners, to help them optimize for the mobile-first world.
About Red Hat
About Red Hat, Inc.
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.
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