JUN 28, 2012 11:09am ET

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Red Hat to Buy FuseSource

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June 28, 2012 – Red Hat announced it will acquire open source application integration vendor FuseSource from Progress Software Corporation.

Application integration and open source messaging products from FuseSource will be part of enhancements to Red Hat’s existing JBoss integration software, and further commercialization plans with FuseSource will be announced later this summer, according to a statement on the deal. Red Hat Middleware VP and General Manager Craig Muzilla said that the acquisition is a response to the demand in enterprise application integration from the adoption of cloud environments.

In its own statement that accompanied quarterly fiscal results, Progress aligned the sale of FuseSource as an overall shift to divest in “non-core” product lines, a move that has caused a stir among some of the vendor’s investors. Those products outside of Progress’ main business application lines saw a nearly $8 million dip in revenue in the second quarter of 2012 compared with that same quarter last year, though Progress gave no indication of how much of that may be attributed to FuseSource.

FuseSource is headquartered in Bedford, Mass. and its open source products are based on Apache ServiceMix, Apache ActiveMQ, Apache CFX, and Apache Camel. Red Hat stated that the technical leadership at FuseSource “includes highly respected open source contributors that are expected to continue to play important roles in the middleware community projects.”

Financial terms were not disclosed and Red Hat anticipates the deal to close by the end of the third quarter of this year. The proposed deal is one of many announcements Red Hat has made this week on strategy and products during its annual open source user conference.

Justin Kern is senior editor at Information Management and can be reached at justin.kern@sourcemedia.com. Follow him on Twitter at @IMJustinKern.

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