RedHat Acquires JBoss: Great News for Java / J2EE and Linux Community

I am very happy for JBoss. Redhat has entered into a definitive agreement to acquire JBoss. This is sure to have long ranging implications for Java / J2EE adoption on Linux.

“It is at Red Hat’s very core to help unlock the power of open source and open communities to innovate across industries, geographies and economies,” said Matthew Szulik, Chairman and CEO of Red Hat. “Red Hat and JBoss are fully aligned around the belief that the open source development model continues to change the economics of enterprise IT in favor of the customer, and we truly believe in the potential of software innovation, once freed from the fetters of proprietary development.”

Red Hat will acquire JBoss for approximately $350 million in initial consideration, plus approximately $70 million subject to the achievement of certain future performance metrics. The transaction consideration is composed of approximately 40% in cash and 60% in Red Hat common stock. The acquisition is expected to be completed around the end of Red Hat’s first fiscal quarter (May 2006), subject to customary closing conditions, including regulatory approval.

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This deal will go a long way to make Java more acceptable and available to Linux community. I expect significant penetration of Java in LAMP community over time as a result.