Red Hat acquires 3scale, which develops API management systems, and intends to open source code of products

Red Hat has announced that it is acquiring 3scale, which is developing software for managing application programming interfaces (APIs) used by software developers.

This deal is not big for Red Hat (a public company that supplies open source software), despite the fact that its operating expenses according to GAAP are said to increase by $ 7 million in fiscal 2017.

Red Hat intends not only to sell the existing cloud service 3scale, but also to present its local version on the market. In addition, in his blog, Mike Peach, vice president and director of middleware at the company Red Hat, wrote that Red Hat "will open the source code as it usually does," and 3scale products will extend the capabilities of its existing software .
')
“3scale technology extends JBoss middleware capabilities. Its robust and versatile API management tools are added to existing advanced integration features that are currently embedded in the Red Hat JBoss Enterprise Application Platform (EAP), JBoss Fuse, JBoss A-MQ and Red Hat Mobile Application Platforms, ”he noted. "Our clients who are implementing integration projects have begun to show more interest in the API management capabilities, and we are pleased to offer them 3scale in addition to the proven JBoss products."

The rival firm Apigee went public last year, and Mashery was acquired by Intel in 2013.

3scale was founded in 2007 and has offices in San Francisco and Barcelona. In 2013, 3scale received $ 4.2 million from the Javelin Venture Partners and Costanoa Venture Capital funds. Its clients include companies like Campbell, Orange and Telegraph.

Red Hat has expanded its capabilities through last year’s acquisition of Ansible, a company that develops software for implementing DevOps technology.

In addition, today Red Hat announced the launch of a share buy-back program worth $ 1 billion and published its earnings for the quarter ended May 31. Red Hat's net income was $ 92 million (not according to the GAAP methodology), which is 50 cents of non-diluted earnings per share on revenue of $ 568 million. The company's profit was consistent with analysts' estimates, and its revenues exceeded the projected values.

During electronic trading after the close of the stock exchange session, Red Hat stock quotes fell by 5 percent.