(RALEIGH) -- Open source software provider, Red Hat, Inc. has signed an agreement to acquire Gluster, Inc. The deal is valued at about $136 million in cash is expected to close later in October.

“Our customers are looking for software-based storage solutions that manage their file-based data on-premise, in the cloud and bridging between the two," said Brian Stevens, CTO and vice president, Worldwide Engineering at Red Hat. The Raleigh-based company expects the acquisition of Gluster to help them meet this demand.

In a release published on Tuesday Red Hat said the acquisition is expected to have no material impact on the company's revenue this fiscal year but should begin to grow next year based on a subscription revenue model.