“Ready to spend some of its IPO riches, Red Hat Inc. is
acquiring Cygnus Solutions in a move that will extend its reach
beyond the Linux operating system into general open-source tools.
The deal gives Red Hat a chance to push its brand name into
embedded applications, an area Cygnus has explored vigorously.”
“The deal, which is expected to close in January, will see
Red Hat issue 6.6 million stock shares to Cygnus, which puts the
Cygnus price tag at $674 million as of Nov. 12. The roles of
Alex Daly and Michael Tiemann, Cygnus’ chief executive officer and
founder, respectively, are yet to be determined.”