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The Daily Deal: Red Hat to Buy E-Commerce Startup

“The Research Triangle Park, N.C.-based Red Hat announced plans
to acquire privately held Hell’s Kitchen Systems, Inc. for up to
398,335 shares of Red Hat worth $90 million. The deal will be
accounted for as a purchase transaction.”

The price tag is astonishing considering that Hell’s
Kitchen only employs three people besides founder and chief
technology officer Todd Masco and CEO Larry Weidman. The math works
out to $18 million per employee.

“A Red Hat spokeswoman said that the acquisition is driven by
HKS’ technology. “Red Hat is looking at the credit card
verification system and the benefits and values it will add to our
customers. It’s a key element in our strategy to create a next
generation software company,” she said.”

Complete
Story