IBM inks $34bn deal to buy Red Hat

IBM has agreed to buy software company Red Hat for $34bn - its biggest acquisition ever.

The move is aimed at helping IBM boost its cloud software offerings to revive the business, commentators said.

Founded in 1993, Red Hat specialises in Linux operating systems, the most popular type of open-source software, which was developed as an alternative to proprietary software made by Microsoft.

The acquisition shows how older technology companies are turning to dealmaking to gain scale and fend off competition, Reuters reported.