Red Hat has completed its US$350 million acquisition of Java application server vendor JBoss.

The deal, announced in April, surprised the IT industry, which at the time was swirling with rumours that Oracle was looking to buy JBoss. But for Red Hat, the move provided new momentum in its efforts to move up the stack beyond its Linux operating system roots.

JBoss will operate as a division of Red Hat, with Marc Fleury, founder and former chief executive officer of JBoss, heading the division as senior vice president and general manager.

The news comes in the wake of the Red Hat Summit last week in Nashville, Tennessee, where Red Hat announced that it is dropping its application server based on the open-source Jonas project from Europe's ObjectWeb open-source software consortium, in favor of the JBoss application server. While industry insiders expected the move at the time the JBoss acquisition was announced, Red Hat said then that it expected to continue its investment in Jonas.