Sun Microsystems Inc. and and Oracle Corporation today announced that they have entered into an agreement under which Oracle will be acquiring Sun for $9.50/share in cash. The deal is estimated a value at approx $7.4 billion, or $5.6 billion net of Sun’s cash and debt.
In a statement issued Oracle President Safra Catz said that
"We expect this acquisition to be accretive to Oracle’s earnings by at least 15 cents on a non-GAAP basis in the first full year after closing. 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,".
This deal is going to bring substantial long-term advantages to Oracle which owns two important Sun software assets: Java and Solaris. The Sun Solaris OS has been the leading platform for oracle data base and with the acquisition of Sun, Oracle can optimize their Oracle database for some of the unique, high-end features of Solaris.
The Board of Directors of Sun Microsystems has unanimously approved the transaction which is expected to close by this summer.
For more information visit the Web site at http://www.oracle.com.