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Big news today.

Red Hat Inc., the world's biggest distributor of Linux-based computer software, agreed to buy JBoss Inc. for $420 million to gain more Internet-based programs.

The transaction includes $210 million in stock, $140 million in cash, plus $70 million once certain goals are reached, Raleigh, North Carolina-based Red Hat said in a Business Wire statement today.

Competitor comment below and more analyst views forthcoming.

From OpenLogic:

"Large enterprises that we talk to certainly want 'one throat to choke' for certification and support of open source solutions - and the deal today between JBoss and Red Hat could help provide that for key fixed stacks. Certainly the valuation that JBoss received from Red Hat shows that Red Hat believes there is demand for certification for core pieces of the open source stack," said Steven Grandchamp, CEO of OpenLogic. "But certified fixed stacks are just the tip of the iceberg. Many large enterprises use hundreds of open source projects mixed in with proprietary and commercial software - so the larger need is for companies to have the flexibility to create
stacks that are specific to their needs."

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