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 eNovance, a leading provider of open source cloud computing services. Combined with Red Hat's existing leadership in OpenStack, the addition of eNovance's systems integration capabilities and engineering talent is aimed at meeting growing demand for enterprise OpenStack consulting, design and deployment.
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.
As noted by IDC analysts Laura DuBois and Ashish Nadkarni in their recent recap of the spring 2014 OpenStack Summit, "Integrators such as eNovance will continue to assist cloud service providers and enterprises in building large OpenStack clouds. ... The future for OpenStack is looking very bright. The next Summit in Paris, France, will take OpenStack to the next phase of its fascinating journey to become a de facto cloud OS."(1)
Founded in 2008 by Raphaël Ferreira, Nicolas Marchal and Pierre Molin, eNovance helps service providers and large-scale private enterprises build and deploy cloud infrastructures quickly and cost effectively. Additionally, they help leading organizations manage a multitude of customer web applications on many of the world's largest public clouds. Like Red Hat, eNovance is at the forefront of the OpenStack community. The company is one of the top 10 contributors to the upstream OpenStack project, and is the only European Gold Member company of the OpenStack Foundation. eNovance has more than 150 global customers, including Alcatel-Lucent, AXA, Cisco, Cloudwatt, and Ericsson. The company has offices in Paris; Montreal; and Bangalore, India.
Red Hat and eNovance first partnered in 2013 to deliver OpenStack implementation and integration services to joint customers, helping to accelerate adoption of Red Hat Enterprise Linux OpenStack Platform. Most recently, in May 2014, the two companies announced an expanded collaboration to drive Network Functions Virtualization (NFV) and telecommunications innovations into OpenStack, aimed at delivering the industry's most complete, carrier-grade telecommunications offering based on Linux, Kernel-based Virtual Machine (KVM), and OpenStack.
Red Hat has agreed to acquire eNovance, a privately-held company, for approximately 50 million Euros in cash and 20 million Euros in shares of Red Hat common stock, subject to certain adjustments at closing. The transaction is expected to close in June 2014, subject to customary closing conditions.
Red Hat will update its guidance and the effect of the eNovance acquisition during its Q1 Fiscal Year 2015 Earnings webcast. The call is scheduled to begin at 5:00 p.m. EDT today and can be accessed by the general public at Red Hat's investor relations website at investors.redhat.com. A replay of the webcast will be available shortly after the live event has ended.
Raphaël Ferreira, co-founder & chief executive officer, eNovance
"eNovance, like Red Hat, understands the transformative power OpenStack can have on the enterprise market when it is both deployed and integrated in the right fashion. We are excited to become part of Red Hat, a company that not only offers one of the best-in-class OpenStack distributions on the market today, but also which shares our common belief that OpenStack is best deployed and integrated in a continuous and seamless manner. This shared philosophy, combined with our mutual deep expertise and capabilities will help us achieve our initial goal from the very founding of the company, which was to bring the power and openness of OpenStack to the broadest global audience possible."
Arun Oberoi, executive vice president, Global Sales and Services, Red Hat
"eNovance is a world-class cloud computing services provider with a proven track record of successful global deployments. 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."
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1 From IDC: "OpenStack Grows Up — Observations from the 2014 Atlanta OpenStack Summit" - May 2014, IDC #248738, available at idc.com.
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