Red Hat will issue as many as 1.26 million common shares for Oakland, Calif.-based Bluecurve. The transaction will be valued based on the average closing price of Red Hat shares for a five-day period ending Monday.
The company will use Bluecurve's performance-management software to create a Web-based service that helps companies build and manage Internet systems.
Chief financial officer Hal Covert said the transaction won't affect fiscal year 2001 earnings or revenue. The purchase, which will help expand Red Hat's subscription-based services, is expected to begin adding to revenue in fiscal 2002, he said.
Shares of Red Hat fell US$1.50 to US$28 on the Nasdaq Stock Market. They've quadrupled since the company went public in August.
Copyright 2000, Bloomberg L.P. All Rights Reserved.
Play video
There are currently no comments for this post.