Oracle Corp. will acquire Sun Microsystems Inc. for $9.50 per share in cash. The deal values Sun at roughly $7.4 billion, or $5.6 billion when Sun’s cash and debt are factored into the cost.
Sun markets a variety of offerings, including the Java technology platform; MySQL database management systems; Solaris Operating System; Sun StorageTek storage solutions; and UltraSPARC processor brands.
“We estimate that the acquired business will contribute over $1.5 billion to Oracle’s non-GAAP operating profit in the first year, increasing to over $2 billion in the second year. This would make the Sun acquisition more profitable in per share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined,” said Oracle president Safra Catz in a statement.
A statement from Oracle referred to Sun’s Java as “the most important software Oracle has ever acquired”, adding that Oracle Fusion Middleware is built on top of Sun’s Java language and software.
Furthermore, “The Sun Solaris operating system is the leading platform for the Oracle database, Oracle’s largest business, and has been for a long time,” according to Oracle’s statement. “With the acquisition of Sun, Oracle can optimize the Oracle database for some of the unique, high-end features of Solaris. Oracle is as committed as ever to Linux and other open platforms and will continue to support and enhance our strong industry partnerships.”
“Oracle and Sun have been industry pioneers and close partners for more than 20 years,” said Sun Chairman Scott McNealy in a statement. “This combination is a natural evolution of our relationship and will be an industry-defining event.”
