IBM reported acquiring Red Hat, a Software Company Valued at $20billion

IBM reported acquiring Red Hat, a Software Company Valued at $20billion

IBM has been reported to be in talks to acquire Red Hat, the open source enterprise software company, according to Bloomberg.

It’s unclear how much the deal is worth, though a source tells Business Insider that it’s in the tens of billions of dollars. Red Hat, which is publicly traded, has a market cap of $20.5 billion.

Despite its large valuation, RedHat has traded as a discount in recent months after a series of hits to its stock. Shares traded upwards of $175 in June, but disappointing earnings combined with a voltile market has dropped the price around $116.

However, more information is said to be revealed later on…