IBM $34 billion acquisition of Red Hat

9/7/2019
Investment grade bond/note issue, Public acquisition

$ 34 billion

Completed

9/7/2019


Overview:

  • IBM has completed its $34 billion acquisition of open-source software company Red Hat
  • The acquisition is IBM's largest ever and among the largest in tech history. 
  • Goldman Sachs, JP Morgan and Lazard acted as financial advisers to IBM on the merger, and Morgan Stanley and Guggenheim Partners advised Red Hat
  • IBM made a $20 billion notes offering in May 2019 to help finance the acquisition. 
  • Having secured the proceeds from the offering, IBM terminated earlier bridge loans from JPMorgan Chase and Goldman Sachs.   
  • The underwriters on the notes offering included JP Morgan, BNP Paribas, Citigroup, Goldman Sachs and BofA Merrill Lynch. 
  • The transaction was first announced in October 2018. 

Kurt Stumpo - US Editor

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