(Bloomberg) -- If International Business Machines Corp.’s $33 billion takeover of Red Hat Inc. doesn’t get done, the open-source software provider will have to pay the enterprise technology giant a breakup fee of $975 million, according to filings with the U.S. Securities and Exchange Commission.
There are several conditions in the deal agreement that cover the termination fee, including a "no shop" provision that prevents Red Hat, a maker of Linux operating system software, from soliciting other acquisition proposals, according to the filings.
To contact the reporter on this story: Dina Bass in Seattle at dbass2@bloomberg.net
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Alistair Barr, Andrew Pollack
