Red Hat has signed a definitive agreement to acquire CoreOS, Inc., an innovator and leader in Kubernetes and container-native solutions for a purchase price of $250 million. The acquisition is subject to certain adjustments at closing that are not expected to be material.

The transaction is expected to have no material impact to Red Hat's guidance for its fourth fiscal quarter or fiscal year ending February 28, 2018. Red Hat’s acquisition of CoreOS will further its vision of enabling customers to build any application and deploy them in any environment with the flexibility afforded by open source. By combining CoreOS’s complementary capabilities with Red Hat’s already broad Kubernetes and container-based portfolio, including Red Hat OpenShift, Red Hat aims to further accelerate adoption and development of hybrid cloud platform for modern application workloads.

Paul Cormier, President, Products and Technologies, Red Hat, said, “The next era of technology is being driven by container-based applications that span multi- and hybrid cloud environments, including physical, virtual, private cloud and public cloud platforms.

Kubernetes, containers and Linux are at the heart of this transformation, and, like Red Hat, CoreOS has been a leader in both the upstream open-source communities that are fuelling these innovations and its work to bring enterprise-grade Kubernetes to customers. We believe this acquisition cements Red Hat as a cornerstone of hybrid cloud and modern app deployments.”

Founded in 2013, CoreOS was created with a goal of building and delivering infrastructure for organizations of all sizes that mirrored that of large-scale software companies, automatically updating and patching servers and helping to solve pain points like downtime, security and resilience. Since its early work to popularize lightweight Linux operating systems optimized for containers, CoreOS has become well-regarded as a leader behind award-winning technologies that are enabling the broad adoption of scalable and resilient containerized applications.

CoreOS is the creator of CoreOS Tectonic, an enterprise-ready Kubernetes platform that provides automated operations, enables portability across private and public cloud providers, and is based on open-source software. It also offers CoreOS Quay, an enterprise-ready container registry. CoreOS is also well-known for helping to drive many of the open-source innovations that are at the heart of containerized applications, including Kubernetes, where it is a leading contributor; Container Linux, a lightweight Linux distribution created and maintained by CoreOS that automates software updates and is streamlined for running containers, etc, the distributed data store for Kubernetes; and rkt, an application container engine, donated to the Cloud Native Computing Foundation (CNCF), that helped drive the current Open Container Initiative (OCI) standard.

Alex Polvi, CEO, CoreOS, said, “Red Hat and CoreOS’s relationship began many years ago as open-source collaborators developing some of the key innovations in containers and distributed systems, helping to make automated operations a reality. This announcement marks a new stage in our shared aim to make these important technologies ubiquitous in business and the world. Thank you to the CoreOS family, our customers, partners, and most of all, the free software community for supporting us in our mission to make the internet more secure through automated operations.”