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According to Globes, RedHat has acquired Qumranet (confirmed via press release)

“Redhat announced its acquisition of Israeli virtualization start-up Qumranet Inc. for about $100 million, ending a long period of rumors. This is Red Hat’s first acquisition in Israel, and it will turn the Linux software company into a market leader in virtualization. Qumranet will become Red Hat’s R&D center in Israel.”

Best known Qumranet co-founders are Benny Schnaider, Moshe Bar, Both are well known, with track records ath Cisco ,PentaCom and P-Cube, and more interesting Qlusters and XenSource (now Citrix)

“Benny Schaider, and Moshe Bar are expected to head Red Hat’s Israeli R&D after the acquisition. Qumranet has 65 employees worldwide, mostly R&D staff in Israel. The company has raised $20 million in two financing rounds from its founders, Sequoia Capital, Northwest Venture Partners, and Cisco. The company still has cash from its latest financing round, which was held in January. ”

This shines a totally different light on the irrational discussion if RedHat should be Acquired by VMWare .

RedHat now owns one of the fastest growing Virtualization technologies around : KVM
RedHat had already chosen for stronger support of KVM, but with todays evolution one has to start thinking about the future of Xen in the leading Linux distribution. In one day RedHat stepped from being just an integrator of different virtualization technologies to one of the leading Virtualization Vendors.