424B7 1 d424b7.htm PROSPECTUS SUPPLEMENT NO. 1 DATED JULY 26, 2006 Prospectus Supplement No. 1 dated July 26, 2006

Filed Pursuant to Rule 424(b)(7)

File No. 333-135323

RED HAT, INC.

Prospectus Supplement No. 1 dated July 26, 2006

to the Prospectus dated June 23, 2006

The information in this prospectus supplement concerning the selling stockholders supplements the statements set forth under the caption “Selling Stockholders” in the prospectus. This prospectus supplement should be read in conjunction with the prospectus, which is required to be delivered with this prospectus supplement.

 


Investing in our common stock involves a high degree of risk. See “Risk Factors” beginning on page 2 of the prospectus.

 


Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

 


The information in the following table is presented as of July 26, 2006 and supersedes the information in the table appearing under the heading “Selling Stockholders” in the prospectus:

 

      Shares of Common
Stock Beneficially
Owned Prior to
Offering (1)
   Number of
Shares of
Common Stock
Being Offered
   Shares of Common
Stock to be Beneficially
Owned After Offering
(1)(2)

Name of Selling Stockholder

   Number    Percentage         Number    Percentage

Accel VIII L.P. (3)

   347,314    *    347,314    —      —  

Accel Internet Fund IV L.P. (4)

   77,181    *    77,181    —      —  

Accel Investors 2004 L.L.C (5)

   43,268    *    43,268    —      —  

Koen

   Aers    953    *    892    61    *

Ana

   Amoretti    1,147    *    1,102    45    *

Max

   Andersen    1,503    *    1,417    86    *

Dimitrios

   Andreadis    1,648    *    1,575    73    *

Mark

   Andres    1,609    *    1,575    34    *

Arjuna Technologies Limited (6)

   47,720    *    47,720    —      —  

Larry

   Augustin (7)    6,721    *    6,721    —      —  

Tom

   Baeyens    6,845    *    6,431    414    *


Bela    Ban    25,859    *    25,199    660    *
Kevin    Barfield    373    *    310    63    *
Jan    Bartel    168    *    168    —      —  
Christian    Bauer    3,540    *    3,272    268    *
Rob    Bearden    126,021    *    126,021    —      —  
Tom    Benninger    266    *    241    25    *
Emmanuel    Bernard    550    *    455    95    *
Amit    Bhayani    204    *    155    49    *
Robert    Bickel (8)    160,654    *    160,654    —      —  
Blake    Bowers    199    *    180    19    *
Daniel    Bradford    998    *    903    95    *
Adrian    Brock    44,488    *    43,566    922    *
Brookside Capital Partners Fund, L.P. (9)    65,450    *    65,450    —      —  
Sylvia    Brophy    168    *    168    —      —  
Paul Eric    Brown    929    *    865    64    *
William    Burke, Jr.    51,652    *    51,262    390    *
Ryan    Campbell    396    *    371    25    *
Chad    Carlisle    1,955    *    1,837    118    *
Shaun    Connolly    7,174    *    6,583    591    *
Kevin    Conner    672    *    672    —      —  
Thomas    Cooper    41,309    *    39,695    1,614    *
Jeffrey    Cramer    977    *    918    59    *
Charles    Crouch    354    *    322    32    *
Marshall    Culpepper    760    *    705    55    *
Francois    Déchery    1,941    *    1,680    261    *
William    DeCoste    420    *    328    92    *
Xavier    Delaporte    1,330    *    1,330    —      —  
Chris    DeLashmutt    308    *    237    71    *
Thomas    Diesler    1,235    *    1,162    73    *
Christoph    Dreischner    323    *    280    43    *
Clifford    D’Souza    743    *    692    51    *
Janine    Eastwood    350    *    285    65    *
Steve    Ebersole    1,255    *    1,185    70    *
Tom    Elrod    2,168    *    2,068    100    *
Igor    Fedorenko    672    *    672    —      —  
Ovidiu    Feodorov    1,720    *    1,653    67    *
Nathalie    Mason-Fleury (10)    466,561    *    466,561    —      —  
Daniel    Fleury    712,439    *    712,439    —      —  
Marc    Fleury (7), (11)    1,570,702    *    1,570,702    —      —  
Jocelyn    Fragniere    175    *    147    28    *
Tobias    Frech    268    *    268    —      —  
Edwin Pierre    Fricke, Jr.    1,314    *    1,037    277    *
Rich    Friedman    3,551    *    3,245    306    *
Rebecca    Goldstein    191    *    156    35    *
Michel    Goossens (7)    8,401    *    8,401    —      —  
Bruce    Gordon    429    *    334    95    *
Jules    Gosnell    2,352    *    2,352    —      —  


Jason    Greene    453    *    363    90    *
Tobias    Hartwig (7)    2,123    *    2,123    —      —  
Jeffrey    Haynie    268    *    268    —      —  
Daryl    Heinz    699    *    640    59    *
Thomas    Heute    977    *    918    59    *
Gregory    Hinkle    422    *    327    95    *
Stephen    Hobbs    17,087    *    17,087    —      —  
Grady    Holbrook    457    *    365    92    *
Intel Capital Corporation (12)    47,151    *    47,151    —      —  
Ivelin    Ivanov    4,015    *    3,858    157    *
Angela    Ivey    83    *    83    —      —  
Olivier    Jann    184    *    157    27    *
Christoph Georg Jung    1,781    *    1,781    —      —  
Kabir    Khan    913    *    830    83    *
Chris    Kimpton    268    *    268    —      —  
Gavin    King    37,173    *    35,494    1,679    *
David    Knox    438    *    346    92    *
Sacha    Labourey (7)    195,126    *    195,126    —      —  
Norbert    Lataille    436    *    436    —      —  
Marc    Lee    787    *    787    —      —  
Thomas    Leonard    35,877    *    34,654    1,223    *
Juha    Lindfors    39,478    *    38,841    637    *
Mark    Little    2,016    *    2,016    —      —  
Michael Ruel    Loehr    217    *    169    48    *
Oleksiy    Lubyanskyy    5,741    *    5,698    43    *
Thibaut    Mallet    333    *    266    67    *
Partners of Matrix Partners VII, L.P. (13)    1,635,174    *    1,635,174    —      —  
Remy    Maucherat    12,733    *    12,391    342    *
John    Mazzitelli    2,452    *    2,238    214    *
Joe    McGonnell    8,768    *    8,360    408    *
Bob    McWhirter    1,680    *    1,680    —      —  
Nathan    Mealy    247    *    190    57    *
Frank    Merenda    680    *    621    59    *
Jeff    Miller    884    *    805    79    *
Andrig    Miller    1,221    *    1,221    —      —  
Christopher    Mills    299    *    228    71    *
James    Moran    679    *    595    84    *
Rob    Morrison    647    *    560    87    *
Brian    Murdoch (7)    27,112    *    25,204    1,908    *
Martin    Musierowicz    1,260    *    1,260    —      —  
Donald    Neely    434    *    339    95    *
Christian    Nelson    2,953    *    2,733    220    *
Mark    Newton    403    *    308    95    *
Andrew    Oliver    5,472    *    5,262    210    *
Thomas    Peuss    3,024    *    3,024    —      —  
Pinnacle Ventures I Affiliates, L.P. (14)    607    *    607    —      —  


Pinnacle Ventures I (Q) Equity Holdings, L.L.C. (14)    29,791    *    29,791    —      —  
Katie    Poplin    581    *    546    35    *
Laurence    Poussot    665    *    665    —      —  
Mark    Proctor    1,680    *    1,680    —      —  
Matthew    Quinlan    1,236    *    1,166    70    *
Steven    Raby (7)    3,382    *    3,203    179    *
Emilie    Ray    293    *    275    18    *
David    Rea    787    *    747    40    *
Francisco    Reverbel    3,024    *    3,024    —      —  
Norman    Richards    1,277    *    1,210    67    *
Noel    Rocher    549    *    525    24    *
Lawrence    Rosen    5,965    *    5,965    —      —  
Roy    Russo    395    *    373    22    *
Seth    Ryan    357    *    292    65    *
Benjamin    Sabrin    109,314    *    109,314    —      —  
Andrew    Sacks    709    *    646    63    *
Anil    Saldhana    1,189    *    1,116    73    *
William    Sengstacken    373    *    249    124    *
Sohil    Shah    433    *    341    92    *
Shawn    Sickler    839    *    798    41    *
Damon    Sicore    706    *    643    63    *
Stan    Silvert    1,122    *    1,075    47    *
Norm    Smith    3,370    *    3,229    141    *
Donald Cary    Smith (7), (15)    43,053    *    41,586    1,467    *
Scott    Stark (7)    485,242    *    485,242    —      —  
Subramaniam    Satyamoorthy (7)    1,394    *    1,299    95    *
Clebert    Suconic    1060    *    965    95    *
Luc    Texier    1,200    *    1,089    111    *
Gail    Tolbert    656    *    656    —      —  
Mladen    Turk    1,467    *    1,378    89    *
Julien    Viet    5,296    *    5,176    120    *
Victor    Vogel    318    *    249    69    *
Wieland    Volkert    15,158    *    15,158    —      —  
Ben    Wang    2,585    *    2,520    65    *
Weston & Co. VII LLC (16)    6,814    *    6,814    —      —  
Gregory    Wilkins    268    *    268    —      —  
James    Williams    324    *    255    69    *
Tom    Wix    4,434    *    4,240    194    *
Alizah    Wolfe    286    *    234    52    *
Juntao    Yuan    723    *    662    61    *

* Less than one percent.
(1) Except for the following, each of the individuals listed as a selling stockholder is an employee or former employee of Red Hat, Inc. and/or JBoss, Inc. or its subsidiaries: Michel Goossens, Lawrence Rosen, Jan Bartel, Igor Fedorenko, Daniel Fleury, Tobias Frech, Jeffrey Haynie, Robert McWhirter, Chris Kimpton, Norbert Lataille, and Christoph Georg Jung.


(2) We do not know when or in what amounts a selling stockholder may offer shares for sale. The selling stockholders might not sell any or all of the shares offered by this prospectus. Because the selling stockholders may offer all or some of the shares pursuant to this offering, and because there are currently no agreements, arrangements or understandings with respect to the sale of any of the shares, we cannot estimate the number of the shares that will be held by the selling stockholders after completion of the offering. For purposes of this table, we have assumed that, after completion of the offering, none of the shares covered by this prospectus (including shares held by certain key employees that are subject to contractual lockups in connection with their employment agreements with Red Hat) will be held by the selling stockholders.
(3) The general partner of Accel VIII L.P. is Accel VIII Associates L.L.C., and the managing members of the general partner are James W. Breyer, Arthur C. Patterson, Theresia Gouw Ranzetta, James R. Swartz and J. Peter Wagner.
(4) The general partner of Accel Internet Fund IV L.P. is Accel VIII Associates L.L.C., and the managing members of the general partner are James W. Breyer, Arthur C. Patterson, Theresia Gouw Ranzetta, James R. Swartz and J. Peter Wagner.
(5) The managing members of Accel Investors 2004 L.L.C. are James W. Breyer, Arthur C. Patterson, Theresia Gouw Ranzetta, James R. Swartz and J. Peter Wagner.
(6) Steve Caughey has voting and/or investment power over the shares held by Arjuna Technologies Limited.
(7) Directors or former directors of JBoss, Inc. or its subsidiaries.
(8) Includes shares held as to which voting and/or investment power is shared through joint ownership with Marlise Bickel.
(9) Domenic Ferrante is the managing member of Brookside Capital Management, LLC, which is the sole general partner of Brookside Capital Investors, L.P., which is the general partner of Brookside Capital Partners Fund, L.P.
(10) Includes 288,254 shares held by the Nathalie Mason-Fleury 2006 A GRAT, 14,416 shares held by the Nathalie Mason-Fleury 2006 B GRAT, and 14,416 shares held by the Nathalie Mason-Fleury 2006 C GRAT. Nathalie Mason-Fleury, as Trustee, has sole voting and investment power over the shares held by the Nathalie Mason-Fleury 2006 A GRAT, the Nathalie Mason-Fleury 2006 B GRAT, and the Nathalie Mason-Fleury 2006 C GRAT.
(11) Includes 288,254 shares held by the Marc Fleury 2006 GRAT. Marc Fleury, as Trustee, has sole voting and investment power over the shares held by the Marc Fleury 2006 GRAT.


  (12) Red Hat, Inc. and its affiliates are party to commercial and technical agreements with Intel Corporation, the parent company of Intel Capital Corporation, and/or its affiliates. Ravi Jacob exercises voting and investment power over the securities beneficially owned by Intel Capital Corporation.
  (13) Consists of shares held by the limited partners of Matrix Partners VII, L.P. and the members of its general partner, Matrix VII Management Company, L.L.C., as a group.
  (14) The general partner of Pinnacle Ventures I Affiliates, L.P. and Pinnacle Ventures I (Q) Equity Holdings, L.L.C. is Pinnacle Ventures Management I, L.L.C. Kenneth R. Pelowski and Robert A. Curley, Jr. are the managing members of Pinnacle Ventures Management I, L.L.C.
  (15) Includes shares held as to which voting and/or investment power is shared through joint ownership with Julie Smith.
  (16) Weston & Co VII LLC (“Weston VII”) consists of a group of holders for whom Weston VII serves as nominee. Matrix Partners Management Services, L.P. (“MPMS”) is the sole member of Weston VII, and Matrix Partners Management Services GP, LLC. (“MPMS GP”) is the general partner of MPMS. Mr. David Skok is an authorized member of MPMS GP, and as such, he may exercise certain rights regarding the Weston VII shares in accordance with instructions provided by the beneficial owners. MPMS, MPMS GP, and Mr. Skok each disclaim beneficial ownership of these shares, and the reporting herein of such shares shall not be construed as an admission that either MPMS, MPMS GP, or Mr. Skok is a beneficial owner of any such shares for purposes of Section 16 of the Exchange Act or for any other purpose.