Press Release

Media Contact:
Karin Bakis
Red Hat, Inc.
(978) 392-1096
kbakis@redhat.com

Investor Relations:
Tom McCallum
Red Hat, Inc.
(919) 754-4630
tmccallum@redhat.com

Red Hat to Acquire FuseSource

Open source integration and messaging provider enhances Red Hat’s JBoss middleware portfolio

RALEIGH, NC and BOSTON, MA – June 27, 2012 – Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions to the enterprise, today announced that it has signed a definitive agreement to acquire FuseSource from Progress Software Corporation. FuseSource, a provider of open source integration and messaging, will enable Red Hat to accelerate the delivery of application integration products and services to enterprise customers.

“Application integration software is one of the fastest growing segments of the enterprise software market,” said Craig Muzilla, vice president and general manager of middleware at Red Hat. “As cloud computing becomes more prevalent, enterprise customers are demanding greater application integration to enable seamless use of cloud computing. With the addition of FuseSource to our middleware portfolio, we will enable customers to experience greater integration capabilities and flexibility. FuseSource’s technologies, expertise, and commitment to open source make them a great fit.”

Headquartered in Bedford, Massachusetts, FuseSource serves many Fortune 500 companies with open source integration and open source messaging products based on Apache ServiceMix, Apache ActiveMQ, Apache CXF, and Apache Camel. FuseSource technical leadership includes highly respected open source contributors that are expected to continue to play important roles in the middleware community projects. Through the FuseSource acquisition, Red Hat will enhance capabilities within JBoss integration software. This technology complements the JBoss product line and will move Red Hat closer to the next generation of application integration products.

The consummation of the acquisition is subject to customary closing conditions. Red Hat does not expect that this transaction will have a material impact on its financial statements for fiscal year 2013. Red Hat expects to announce comprehensive commercialization plans later this summer.

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About Red Hat, Inc.

Red Hat is the world’s leading provider of open source software solutions, taking a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at www.redhat.com.

Forward-Looking Statements

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; uncertainty and adverse results in litigation and related settlements; the integration of acquisitions and the ability to market successfully acquired technologies and products; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Annual Report on Form 10-K (copies of which may be accessed through the Securities and Exchange Commission’s website at www.sec.gov), including those found therein under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods, including events in Japan. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of the press release.

Red Hat, Inc. Red Hat, the Shadowman logo and JBoss are registered trademarks of Red Hat, Inc. in the U.S. and other countries. Linux is a registered trademark of Linus Torvalds.

Acquisition FAQ

FuseSource Acquisition FAQ – September 7, 2012

Q: What was announced?
A: On September 7, 2012 Red Hat completed its acquisition of the FuseSource business.

Q: Why has Red Hat agreed to make this purchase
A: By combining the enterprise strength of JBoss Enterprise SOA Platform and other JBoss Enterprise Middleware with the popular and widely used Camel integration framework, Red Hat can drive JBoss integration solutions across a broader base of customers and deeper into the enterprise. We expect that Camel will be instrumental to simplifying integration for cloud and on-premise deployments. The FuseSource business employs leading Apache integration developers in various communities (e.g. Camel, ActiveMQ, ServiceMix, Karaf), naturally extending the existing Red Hat integration project teams and communities. The combined communities and development teams are expected to help drive open source integration to a larger presence in the market.

Q: What is Red Hat’s plan of action with respect to existing FuseSource products?
A: Red Hat plans to continue to sell and support FuseSource technology while developing a converged roadmap to a cloud-ready integration fabric and enterprise platform. The FuseSource business has a community and customer base that is engaged and growing, and Red Hat is committed to expanding and innovating to provide customers with high-value solutions.

Q: What is Red Hat’s sales strategy/plan for FuseSource products?
A: In the coming months Red Hat plans to incorporate FuseSource products into Red Hat JBoss solutions and offer them using a typical subscription model, similar to what they do with other Red Hat JBoss products.

Q: How does FuseSource technology complement Red Hat’s current middleware offerings?
A: Camel, along with other lightweight integration FuseSource capabilities (e.g., mediation framework), will enable Red Hat to deliver a lightweight integration platform that is well-suited for embedded and cloud-based integration scenarios. Additionally, the combination of Camel technology with Red Hat’s JBoss Enterprise SOA Platform’s solid enterprise foundation will help enable quicker and easier development with industry-standard enterprise integration patterns and Camel ecosystem capabilities.

Q: Will Red Hat continue to foster the FuseSource development community?
A: Yes. The open source development and subscription business models used in the FuseSource business match well with those of Red Hat. For example, Camel at Apache.org complements Red Hat’s integration projects at JBoss.org. We expect that with Red Hat’s backing, the Camel and other communities will benefit from the long-term, stable commitment of the world’s leading provider of open source solutions, and will continue to grow.

Q: How will this acquisition make Red Hat more competitive?
A: Red Hat has been a leader in improving developer productivity to speed application development with JBoss Enterprise Application Platform 6.0 with Java EE 6 leadership. The FuseSource business, with its strong ties and leadership to the Camel community, brings that same type of leading developer productivity to integration developers building on the JBoss Enterprise SOA Platform and lightweight integration offerings. JBoss integration products can also expand their reach into solving highly distributed integration use cases.

Q: How does the FuseSource business fit into Red Hat’s cloud strategy?
A: Lightweight integration technology including Camel offer compelling value as distributed enterprise application integration and service integration platforms in the cloud and on-premise that can connect into larger scale integration platforms such as JBoss Enterprise SOA Platform. A lightweight integration fabric designed to scale elastically with cloud resources is well suited to tomorrow’s application integration workloads. When integrated into Red Hat’s cloud and integration strategies, Camel delivers a leading end-to-end integration framework to enable rapid integration development that complements Red Hat’s rapid application development with JBoss Enterprise Middleware and OpenShift.

Q: Will the FuseSource business be a separate business unit?
A: No. The FuseSource business will be integrated into the Middleware (JBoss) Business Unit.

Q: What does this mean for Red Hat’s existing JBoss Enterprise SOA Platform customers?
A: This means greater integration with Camel, delivering its developer and ecosystem benefits for SOA Platform customers over time. We just announced a bridge to Camel in JBoss Enterprise SOA Platform 5.3 and plan on greater integration of this ecosystem in future releases.

Q: What does this mean for existing FuseSource technology customers?
A: This acquisition offers the strengths and benefits of both FuseSource and JBoss technologies on a converged, cloud-ready integration portfolio.

Q: When will we see a converged roadmap?
A: We plan to have a converged roadmap later this year.

Contacts

For questions about the acquisition please contact Red Hat:

Media Contact:
Daniel Thompson
Red Hat, Inc.
(978) 589-1059
dthompso@redhat.com

Investor Relations:
Tom McCallum
Red Hat, Inc.
(919) 754-4630
tmccallu@redhat.com

To reach FuseSource directly:

• Email: Contact Us
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Latest News

Read the reaction to the announcement:

• The Boston Globe – Red Hat buys FuseSource from Progress Software Corp. in Bedford
• ZDNet – Red Hat acquires FuseSource
• Businessweek – Red Hat to buy FuseSource for undisclosed sum
• SYS-CON – Red Hat’s Buying FuseSource Off Progress Software
• Mass High Tech – Progress Software sells spinoff to Linux giant
• CRN – Red Hat Buy To Rev Up JBoss Middleware Line
• The Var Guy – Red Hat Makes Acquisition Amid Hybrid Cloud Storage Push
• The H – FuseSource acquired by Red Hat
• eWeek – Red Hat to Buy FuseSource to Bolster Middleware Play
• SearchSOA/TechTarget – RedHat buys FuseSource to gain added application integration skills and tools
• Information Management – Red Hat to Buy FuseSource