At $190 per share, IBM (IBM) is acquiring Red Hat (RHT) at an enterprise value to last twelve months subscription revenue of 12.3 times, Jefferies analyst John DiFucci tells investors in a research note. The analyst is “surprised by this multiple given that historically IBM has been extremely disciplined with its acquisitions.” The “rich valuation” paid by IBM is likely to keep other potential suitors on the sidelines, DiFucci tells investors in a research note partially titled “Hold on to your Hat.” While he believes the rich take-out multiple will discourage any competing bids for Red Hat, the analyst does expect M&A to support Software stocks, “especially since deemed repatriation has filled the coffers of potential acquirers.” DiFucci raised his price target for Red Hat shares to $190 from $140 and keeps a Hold rating on the name. The stock in premarket trading is up 50%, or $57.83, to $174.51. IBM is down 5%, or $6.06, to $118.73.