By Stephen Shankland, 13 January 2004 09:15
NEWS Leading Linux seller Red Hat has raised $600m through a bond offering, bringing its cash reserves to about $1bn.
Red Hat announced a plan last week to sell $400m of the bonds, but when they were priced on Tuesday, there was demand for $500m worth, Red Hat said. Then, the company exercised an overallotment program to bring the total to $600m, Red Hat spokeswoman Leigh Day said.
The money will be used for acquisitions and international expansion, the company said in a statement.
Sameer Nadkarni, a W.R. Hambrecht securities analyst, said in a research report that Red Hat's new cash should help the company "broaden its global footprint at a faster rate and to be more productive in adding technology layers to its product offering.
Nadkarni expects Red Hat will acquire smaller companies such as those focusing on security, application server software and virtualisation of computing resources.
Stephen Shankland writes for News.com
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1. AB
I worry about redhat becoming a disparate mass of seemingly unconnected entities. My own feeling is that they should concentrate on their distribution.