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IBM to Buy Software Maker Red Hat for About $33 Billion

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IBM agreed to buy software maker Red Hat Inc. in a deal valued at about $34 billion, making it the computer-services giant’s largest acquisition ever as it expands cloud-based services.

International Business Machines Corp. will pay $190 a share in cash, the companies said Sunday in a statement after Bloomberg News first reported they were nearing a deal. Red Hat’s shares closed at $116.68 on Friday. The Raleigh, North Carolina-based company will continue as a unit of IBM with its current managers.