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IBM buying Red Hat for $34b

IBM has announced it is buying Red Hat for $34 billion.

The firm has confirmed plans to acquire the leading open source software company, which became the first of its kind to surpass $1 billion in revenue in 2012.

It will become part of the Hybrid Cloud Division, and IBM says its newest acquisition's services will give more businesses the chance to move their operations online.

It also added that the purchase will allow the company to expand its cloud computing offerings.

Ginni Rometty - chairman, president and CEO - said: "Most companies today are only 20 percent along their cloud journey, renting [computer] power to cut costs. The next 80 percent is about unlocking real business value and driving growth."

Meanwhile, Red Hat's own president and CEO Jim Whitehurst noted that the deal will allow his company to reach a wider audience, and said IBM would preserve its "unwavering commitment to open source innovation".

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