Sun Microsystems and Oracle have entered into a definitive agreement under which Oracle will acquire Sun common stock for US$9.50 per share in cash. The transaction is valued at approximately US$7.4bn, or US$5.6bn net of Sun’s cash and debt.
“The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems,” said Oracle CEO Larry Ellison. “Oracle will be the only company that can engineer an integrated system – applications to disk – where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down, while system performance, reliability and security go up.”
There are long-term customer advantages to Oracle owning two key Sun software assets: Java and Solaris. Oracle Fusion Middleware is built on top of Sun’s Java language and software. Oracle can now ensure continued innovation and investment in Java technology for the benefit of customers and the Java community.
The Sun Solaris operating system is the leading platform for the Oracle database. With the acquisition of Sun, Oracle can optimise the Oracle database for some of the unique, high-end features of Solaris. Oracle is still committed to Linux and other open platforms, stated the company.
The Board of Directors of Sun Microsystems has unanimously approved the transaction. It is anticipated to close this summer, subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions.
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