Red Hat to buy open-source software maker JBoss

RALEIGH, N.C. (AP) _ Software developer Red Hat says it's agreed to buy software maker JBoss for 350 (m) million dollars in stock and cash. <br/><br/>The acquisition is split 40 percent to 60 percent

Monday, April 10th 2006, 10:09 am

By: News On 6

RALEIGH, N.C. (AP) _ Software developer Red Hat says it's agreed to buy software maker JBoss for 350 (m) million dollars in stock and cash.

The acquisition is split 40 percent to 60 percent between cash and Red Hat common stock. It's expected to be completed in May.

In addition to the initial payment, Red Hat could pay a $70-million bonus depending on future performance.

Red Hat reported at the end of last month that its fourth-quarter profit more than doubled to slightly more than $27-million. That's up from nearly $12-million in the same period last year.

The company says the acquisition of privately held JBoss will likely hurt earnings slightly in the quarter ending August 31st, but probably have no impact on the full fiscal year.