In 1993 Bob Young incorporated the ACC Corporation, a catalog business that sold Linux and UNIX software accessories. Then in 1994 Marc Ewing created his own version of Linux, which he named Red Hat Linux. Ewing released it in October, and it became known as the Halloween release. Young bought Ewing's business in 1995, and the two merged to become Red Hat Software with Young serving as CEO.
Red Hat went public on August 11, 1999, the eighth-biggest first-day gain in Wall Street history. Matthew Szulik succeeded Bob Young as CEO in November of that year. On November 15, 1999, Red Hat acquired Cygnus Solutions. Cygnus provided commercial support for free software and housed maintainers of GNU software products such as GNU Debugger and GNU Binutils. One of the founders, Michael Tiemann, served as the Chief Technical Officer of Red Hat and now serves as the vice president of open source affairs.
In February 2000, InfoWorld awarded Red Hat with its fourth consecutive "Operating System Product of the Year" award for Red Hat Linux 6.1. Company headquarters were moved from Durham, NC, to N.C. State University's Centennial Campus in Raleigh, NC in February of 2002.
The following March Red Hat introduced the first enterprise-class Linux operating system: Red Hat Advanced Server, later named Red Hat Enterprise Linux. Dell, IBM, HP and the Oracle Corporation announced their support of the platform.