RALEIGH, N.C.--(BUSINESS WIRE)--Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced that its Board of Directors has authorized the repurchase of up to $1 billion of the Company’s common stock from time to time on the open market or in privately negotiated transactions.

The new program is to replace the previous $500 million repurchase program that will be terminated effective June 30, 2016. Approximately $329 million was used under the previous program through June 22, 2016.

“Red Hat’s management team and Board of Directors firmly believe in our long-term growth prospects. We are also committed to efficient capital allocation, as we demonstrated today with a significant increase to our stock repurchase authorization,” stated Frank Calderoni, Executive Vice President, Operations and Chief Financial Officer of Red Hat. “We intend to utilize our healthy balance sheet and the ability to generate operating cash flow to fund the new repurchase program, which we believe will create further value for our shareholders.”

The timing and the amount of any repurchases of common stock will be determined by Red Hat management based on its evaluation of market conditions and other factors. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased common stock will be available for use in connection with the Company's stock plans and for other corporate purposes.

As of May 31, 2016, the Company had cash and investments of approximately $2.12 billion.

Red Hat had approximately 181.1 million shares of common stock outstanding as of May 31, 2016.

About Red Hat, Inc.

Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to provide reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.