Red Hat, Inc., the world’s leading provider of open source solutions, announced that it would acquire CoreOS, Inc., a company known for providing the Container Linux operating system (formerly CoreOS Linux), Tectonic for Kubernetes, and Quay Enterprise container registry, for the price of $250 million USD.

CoreOS joining Red Hat means automated operations are coming to all. In other words, both companies will work together to expand Kubernetes, the open-source system for automating scaling, deployment, and management of containerized applications in business environments, as well as to innovate in containers and distributed systems.

Red Hat’s acquisition of CoreOS will also accelerate the adoption and development of the best hybrid cloud platform available to date for modern application workloads, whose demand continues to grow every day. Red Hat is already a leader in enabling enterprises around the globe to embrace container-based apps with its Red Hat OpenShift enterprise-ready and comprehensive Kubernetes platform.

“The next era of technology is being driven by container-based applications that span multi- and hybrid cloud environments, including physical, virtual, private cloud and public cloud platforms,” says Paul Cormier, President, Products and Technologies, Red Hat. “We believe this acquisition cements Red Hat as a cornerstone of hybrid cloud and modern app deployments.”

“Red Hat and CoreOS’s relationship began many years ago as open source collaborators developing some of the key innovations in containers and distributed systems, helping to make automated operations a reality. This announcement marks a new stage in our shared aim to make these important technologies ubiquitous in business and the world,” Alex Polvi, CEO, CoreOS.

Red Hat’s acquisition of CoreOS expected to close in January 2018

Red Hat expects to close the transaction in January 2018, which won’t have a material impact to Red Hat’s guidance for the company’s Q4 or the fiscal year ending February 28, 2018. On the other hand, CoreOS promises to continue to honor all existing customer engagements, and send a direct email to all of them about these new changes.

We believe that CoreOS’ Container Linux distribution for automating software updates and running container apps will remain free to download, though neither company said anything public about this. CoreOS is currently available for download through our web portal if you want to install it on your infrastructure for clustered deployments.

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