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Red Hat Inc., a leading distributor of the Linux operating system, agreed to buy closely held Cygnus Solutions for about $674 million in stock to increase the use of its software in other products. Red Hat would issue as many as 6.62 million shares for Sunnyvale, Calif.-based Cygnus, which makes software used to create applications that run on the Linux operating system. Durham, N.C.-based Red Hat rose $3.56 to close at $105.38 on the New York Stock Exchange.