Oct 28 (Reuters) - IBM (NYSE:IBM) IBM.N :
* IBM TO ACQUIRE RED HAT, COMPLETELY CHANGING THE CLOUD LANDSCAPE AND BECOMING WORLD'S #1 HYBRID CLOUD PROVIDER
* COMPANIES HAVE REACHED A DEFINITIVE AGREEMENT UNDER WHICH IBM WILL ACQUIRE ALL OF ISSUED AND OUTSTANDING COMMON SHARES OF RED HAT
* WILL ACQUIRE ALL OF ISSUED AND OUTSTANDING COMMON SHARES OF RED HAT FOR $190.00 PER SHARE IN CASH
* DEAL REPRESENTING A TOTAL ENTERPRISE VALUE OF APPROXIMATELY $34 BILLION
* COMPANY INTENDS TO SUSPEND ITS SHARE REPURCHASE PROGRAM IN 2020 AND 2021
* COMPANY INTENDS TO CLOSE TRANSACTION THROUGH A COMBINATION OF CASH AND DEBT
* ACQUISITION HAS BEEN APPROVED BY BOARDS OF DIRECTORS OF BOTH IBM AND RED HAT
* DEAL SUBJECT TO RED HAT SHAREHOLDER APPROVAL
* DEAL WILL BE FREE CASH FLOW AND GROSS MARGIN ACCRETIVE WITHIN 12 MONTHS, ACCELERATE REVENUE GROWTH AND SUPPORT A SOLID AND GROWING DIVIDEND
* RED HAT TO OPERATE AS A DISTINCT UNIT WITHIN IBM'S HYBRID CLOUD TEAM
* RED HAT WILL CONTINUE TO BE LED BY JIM WHITEHURST AND RED HAT'S CURRENT MANAGEMENT TEAM
* JIM WHITEHURST ALSO WILL JOIN IBM'S SENIOR MANAGEMENT TEAM AND REPORT TO GINNI ROMETTY
* IBM INTENDS TO MAINTAIN RED HAT'S HEADQUARTERS, FACILITIES, BRANDS AND PRACTICES
* AT SIGNING, COMPANY HAS AMPLE CASH, CREDIT AND BRIDGE LINES TO SECURE TRANSACTION FINANCING