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Red Hat completes acquisition of Neural Magic to boost optimized generative AI innovation

Jan 13, 2025•6 months ago

Acquiring Company

Red Hat

Acquired Company

Neural Magic

RaleighSomervilleCloud ComputingEnterprise SoftwareInformation TechnologySoftwareInformation Technology

Description

Red Hat, Inc. has successfully completed the acquisition of Neural Magic, a pioneer in software and algorithms that accelerate generative AI (gen AI) inference workloads. This acquisition will enhance Red Hat's expertise in AI performance engineering and model optimization, enabling the company to answer unique customer needs and furthering its commitment to open source innovation for AI.

Company Information

Company

Red Hat

Location

Raleigh, North Carolina, United States

About

Red Hat is the world’s leading provider of enterprise open source software solutions, using a community-powered approach to deliver reliable and high-performing Linux, hybrid cloud, container, and Kubernetes technologies. Red Hat helps customers integrate new and existing IT applications, develop cloud-native applications, standardize on our industry-leading operating system, and automate, secure, and manage complex environments. Award-winning support, training, and consulting services make Red Hat a trusted adviser to the Fortune 500. As a strategic partner to cloud providers, system integrators, application vendors, customers, and open source communities, Red Hat can help organizations prepare for the digital future.

M&A Insights

Based on deal data
Integration timeline
70% of M&A integrations take 12-24 months to complete
Tech stack consolidation
83% of merged companies consolidate technology vendors within first year
Post-acquisition investment
Companies increase IT spending by 23% on average after acquisitions
Success factor
M&A deals with strong technology integration plans are 2.5x more likely to succeed

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