Open-source giant Red Hat Inc. has acquired Qumranet, an Israel-based developer of server and desktop virtualization software, for $107 million in an all cash transaction.

The acquisition includes Qumranet's virtualization solutions, including its KVM (Kernel Virtual Machine) platform and SolidICE offering, a virtual desktop infrastructure (VDI), which together present a comprehensive virtualization platform for enterprise customers.

In addition, Red Hat also gains Qumranet's talented team of professionals that helped develop, test and support Qumranet solutions and its leaders of the open source community KVM project.

The addition of Qumranet will give Red Hat’s Enterprise Linux a chance to play an expanded role in enterprise virtualization. The firm plans to incorporate Qumranet's Kernal Virtual Machine (KVM) into its flagship Red Hat Enterprise Linux.

UBS Investment Bank acted as the sole strategic advisor to Red Hat in this transaction.