Red Hat adds consultants with acquisition
BOSTON, March 13 (Reuters) - Software maker Red Hat Inc (RHT.N: Quote, Profile, Research, Stock Buzz) said on Thursday it bought a technology consulting company, bringing on some 120 consultants it hopes will help boost sales of big-ticket software programs.
The purchase price for the consulting firm, privately held Amentra, was not disclosed.
Red Hat, the world's largest publicly held maker of the Linux operating system used by small businesses and large companies, started selling high-priced computer programs to large businesses in 2006, when it spent $350 million for business software maker JBoss.
The company does not break out the results of the JBoss unit from its other software sales, so it has been tough for investors to assess its performance.
But in September, Red Hat executives disclosed that JBoss had not been meeting sales targets.
"It's a tougher sell," said Red Hat Vice President Craig Muzilla," referring to the higher-priced software. Red Hat's experience has been in selling Linux, which has a low average selling price.
Muzilla was put in charge of the JBoss group in August and has been working to turn it around.
Since then Red Hat has broadened its product line, added new services and expanded its group of outside resellers, particularly in overseas markets.
Muzilla said that Red Hat does not buy any more consulting firms following its purchase of Amentra. Continued...
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