Red Hat gains full control of Indian unit

By Reuters

Published: December 8, 2005, 9:54 AM PST

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Software and services firm Red Hat said Wednesday that it has gained full control of its Indian venture after buying out the remaining 40 percent from its local partner for an undisclosed sum.

The company, a leader in versions of Linux software that can be obtained for free and modified, aims to invest $20 million in India over the next several years as it expands in one of the fastest growing markets for software, SFO Charlie Peters told a news conference.

"The acquisition and the planned investment will help Red Hat accelerate the growth," he said.

Red Hat's business in India has grown 100 percent annually in the past five years and it aims to focus on local state governments and educational institutions to expand operations, Peters said. He did not give revenue figures.

In other news:

"We have succeeded in states like Maharashtra and West Bengal and our engagement with the government is set to go up," said Javed Tapia, president for the Indian subcontinent and the local partner who sold his 40 percent holding to Red Hat.

The company also aims to triple its present 140-person staff in the next two to three years, Peters said.

Linux is open-source software that can be copied and modified freely, unlike proprietary software such as Microsoft's Windows operating system.