Oracle Corp. Swoops in to Acquire Sun Microsystems

April 20, 2009

(ChattahBox) — One database giant (IBM) attempted but failed to buy Sun Microsystems, but another one has swooped in to get a deal done.  IBM originally offered $10 a share but then lowered it to $9.40 and the Sun board balked.  Two weeks later Oracle offered $9.50, still a share 42 percent premium over Sun’s closing price of $6.69 on Friday, which would value the transition at $7.4 billion, and Sun’s directors unanimously approved the transaction. The sale is anticipated to close this summer, subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions, the companies said in a statement.

Though Sun’s Solaris Server has long been a successful platform for Oracle’s database business it’s still somewhat of a surprise deal given that Oracle,has long-standing partnerships with Sun’s rivals after a fallout, including Hewlett-Packard and Dell, who fine tune Oracle’s database and business software for their computers. The upside is Oracle will be able to package custom servers installed with their higher-profit database and business software much like IBM does. Plus Oracle gains access to thousands of existing Sun customers who may be running rival databases and apps software. In addition, Oracle gets ownership of the open-source MySQL database, which Sun acquired last year for $1 billion.  Many thought Oracle’s recent spending spree might be over after acquiring and trying to assimilate Siebel, PeopleSoft and BEA Systems in the last few years.


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