Barcelona-based 3scale Acquired By Open Source Giant Red Hat

The news of the acquisition came last Wednesday and Mike Piech, vice president and general manager of middleware at Red Hat, wrote this in a blog post last night:

“Given the fundamental importance of API management, I am ecstatic to share the news today that Red Hat is acquiring 3scale, with whom we’ve had a very successful collaboration for more than a year. The 3scale technology complements the Red Hat JBoss Middleware portfolio, adding a robust and comprehensive set of API management capabilities to the existing rich integration features offered in today.”

3scale is an American company, but one of their two headquarters is located in Barcelona.

Undisclosed amount

3scale is now offered in an as-a-Service model and joins Red Hat OpenShift Online and Red Hat Mobile Application Platform in that format.

3scale was recently acquired by Red Hat after a year of working together in a partnership.

The amount of the acquisition is undisclosed

3scale was founded in 2007 and their latest round of funding was in 2013, when they raised 4.2 million from Costanoa Venture Capital and Javelin Venture Partners.

They handle API’s for several big clients such as Orange, Decathlon, GSMA and the Telegraph.

Plunging stock

Red Hat went public back in 2002, but after the news of their annual earnings, acquiring 3scale, and buying back over $1 billion in stock repurchase, the stock price ended up going down around 5 percent Wednesday evening.

Red Hat VP Piech belives the acquisition will benefit both companies’ customers:

“The combined power of Red Hat’s container application platform and 3scale’s API management capabilities enables customers to simplify and automate tasks, helping reduce errors while increasing flexibility and control.”

Steven Willmott, 3scale CEO, explains that he sees the deal as a natural extension of their already existing relationship:

3scale was recently acquired by Red Hat after a year of working together in a partnership.

“We’ve already seen great customer success combining Red Hat’s excellent middleware platform with 3scale API management, and we see tremendous opportunity to benefit customers even more as they expand their API, middleware and microservices plans.”