(RALEIGH) -- Software developer Red Hat will keep its company headquarters in North Carolina. The company announced the decision along with plans to add 540 jobs over 17 years at a new headquarters facility in Wake County.

Governor Bev Perdue said the fact that Red Hat chose North Carolina bodes well for the state. "There are at least a couple of other governors in America who are not nearly as happy as I am because this has been a very aggressive competition that defines once more North Carolina's capacity to keep and grow the best talent locally right here in our state," said Perdue.

Red Hat CEO Jim Whitehurst pointed out that the company has sustained strong growth, despite the recent economic downturn. "We do bring a lot of economic benefits to the communities where we operate and we thought long and hard about making sure that we're making the right decision for the long-term," said Whitehurst.

The company will receive nearly $18 million worth of state and local incentives if the job creation targets are met. State commerce officials estimate that Red Hat will have an economic impact of nearly $1.5 billion during the 17-year term of the incentives package.