On April 20, 2009, Oracle announced it has entered into an agreement to acquire Sun Microsystems (Sun). The proposed transaction is subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions. Until the deal closes, each company will continue to operate independently, and it is business as usual.The acquisition combines best-in-class enterprise software and mission-critical computing systems. Oracle plans to engineer and deliver an integrated system—applications to disk—where all the pieces fit and work together so customers do not have to do it themselves. Customers benefit as their system integration costs go down while system performance, reliability and security go up.
Oracle will pay $9.50 a share for Sun, which values the high-end server and software maker at about $7.06 billion, based on 743 million shares outstanding as of the end of its second fiscal quarter on December 28, according to Sun. Sun had previously rejected IBM’s offer to pay up to $9.40 a share, according to sources with knowledge of the matter. Shares of Sun jumped 35.7 percent to $9.08 in morning Nasdaq trading, while Oracle shares fell 3.7 percent to $18.36. Shares of IBM, which did not immediately return calls for comment, fell 1.8 percent to $99.49 on the NYSE. Oracle President Safra Catz said on a conference call that Oracle intends to make the hardware division profitable. Sun’s top-selling products are high-end servers and storage equipment.
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