Looking to accelerate its footprint in the burgeoning cloud market, IBM bought leading open source provider Red Hat for $34 billion, the companies announced Sunday.

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In the deal, IBM purchased all outstanding shares of Red Hat for $190 each.

"The acquisition of Red Hat is a game-changer. It changes everything about the cloud market," Ginni Rometty, IBM chairman, president and chief executive officer, said in a release. "This is the next chapter of the cloud. It requires shifting business applications to hybrid cloud, extracting more data and optimizing every part of the business, from supply chains to sales."

The software company will fold into part of IBM's Hybrid Cloud Division, CNBC reported. IBM is focused on its growth in cloud as well as social, mobile and analytics.

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Workers, clean up damaged house near Paulding County High School after a storm passed through, Sunday, March 16, 2025, in Dallas. National Weather Service teams will be conducting a damage survey in the Paulding County/Dallas area, which sustained “pretty significant” damage from the storms, NWS Senior Meteorologist Dylan Lusk told The Atlanta Journal-Constitution on Sunday morning. (Hyosub Shin / AJC)

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