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Simpson Thacher is representing JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC in connection with a bridge term loan facility of up to $20 billion for International Business Machines Corporation (“IBM”) to finance its announced acquisition of Red Hat, Inc. (“Red Hat”), valued at a total purchase price of approximately $34 billion. The transaction is expected to close in the latter half of 2019, subject to the satisfaction of customary closing conditions and applicable regulatory approvals.

Red Hat is a leading provider of enterprise open source software solutions, using a community-powered approach to deliver reliable and high-performing Linux, hybrid cloud, container, and Kubernetes technologies.

IBM creates value for clients through integrated solutions and products that leverage data, information technology, deep expertise in industries and business processes, and a broad ecosystem of partners and alliances. IBM solutions typically create value by enabling new capabilities for clients that transform their businesses and help them engage with their customers and employees in new ways. These solutions draw from an industry-leading portfolio of consulting and IT implementation services, cloud and cognitive offerings, and enterprise systems and software; all bolstered by one of the world's leading research organizations.

The Simpson Thacher team includes Patrick Ryan and Adam Moss (Banking and Credit); and Bill Brentani and Jay Higdon (Capital Markets).