Red Hat Bolsters Cloud Services With eNovance Acquisition
The deal, valued at approximately $95 million, extends Red Hat's reach into the OpenStack market.Red Hat today announced the acquisition of privately held eNovance in a deal that brings one of the top OpenStack cloud contributors into the Red Hat fold. The deal is valued at approximately 50 million euros in cash and 20 million euros in shares of Red Hat common stock, which converts to approximately $95 million USD. Red Hat is not providing an official USD conversion amount for the transaction at this time. eNovance is one of the top 10 contributors to the open-source OpenStack platform, as is Red Hat. What eNovance brings to the table is a services business around OpenStack. Arun Oberoi, executive vice president of global sales and services at Red Hat, told eWEEK that from a services standpoint, eNovance brings a lot of breadth, scale and expertise in building, integrating and maintaining both private and public cloud environments. "They will provide a center of excellence capability on continuous integration/continuous delivery methodology in customer OpenStack environments," Oberoi said. "They will help us extend a DevOps capability across a spectrum of dev, test and production clouds."
In addition, eNovance brings to Red Hat a strong Ceph storage capability, Oberoi said. Red Hat acquired Inktank, the lead commercial sponsor behind the open-source Ceph storage filesystem at the end of April in a deal valued at $175 million.