- Red Hat (NYSE:RHT) inks an agreement to acquire San Francisco-based 3scale, a leading provider of application programming interface (API) management technology, for an undisclosed sum.
- The companies have been partnering since 2015 to deliver a comprehensive platform for API-based application development. 3scale currently offers a hybrid cloud-based API management platform which separates the cloud management layer from the API gateway, providing customers scale, flexibility and performance.
- Recently, 3scale debuted a containerized version of their API Gateway for Red Hat OpenShift which enables users to easily create applications with microservices distributed across diverse hybrid environments.
- The deal, expected to close this month, will not impact Red Hat's fiscal Q2 or fiscal 2017 revenue, but is projected to increase operating expenses by ~$3M ($0.01/share) in FQ2 and $7M ($0.03/share) in F17. The impact on non-GAAP expenses should be ~$1.5M and $5M, respectively.