The rumors about someone buying JBoss have been bouncing around for weeks. As I was working on a presentation titled Commercializing Open Source for Eric von Hippel’s Democratizing Innovation conference this week, I went to Red Hat’s page to pick up their logo and saw that they announced the acquisition of JBoss this morning.
This is a huge success for everyone involved, especially Marc Fleury (JBoss CEO and founder) and the primary investors – Accel, Intel, and Matrix. JBoss only did one disclosed round of financing for $10 million about two years ago. Red Hat acquired them for $350 million with an additional $70 million earn out. This is about 10% of Red Hat’s market cap.
Oracle should have stretched a little harder for this one.
Posted in: DealsCOMMENTS (1)
Good for JBoss, but bad for entreprenuers and economy.
Providing x35 ROI is potentially setting the VC industry eyes on a higher target making it difficult for other businesses and also attracting less professional VCs to hyped up investments that will fail...
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)