Red Hat, which sells support services for open-source business software that's distributed for free, has been generating a lot of positive free cash flow lately. So what is the technology company planning on doing with all that cash?

For some time, the tech name had been buying back shares, CEO Jim Whitehurst told Cramer Thursday. Whitehurst said it's been buying less shares lately, though.

"In a market that's this fluid, we do want to make sure that we have flexibility if the right acquisition targets come along," Whitehurst said. "That said, we also want to be careful when markets are this heady to not grossly over pay for assets."

Whitehurst said Red Hat has been diligent in buying small tech companies. He wants to make sure it has enough cash to continue making the right acquisitions.

The 43-year-old executive spoke with Cramer about a variety of other topics, including the company's future prospects. Watch the video to see the full interview.

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