X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SANTA CLARA, CA-Oracle Corp. said Monday it has signed a definitive agreement to acquire Sun Microsystems for $9.50 per common share. The $7.4 billion deal–$5.6 billion after accounting for Sun’s cash and debt–brings together a corporate software maker and a builder of corporate computer systems whose headquarters are 24 miles apart, Sun’s here in Santa Clara and Oracle’s just up the Peninsula in Redwood Shores.

The deal is expected to close this summer subject to Sun stockholder approval, regulatory approvals and customary closing conditions. Earlier this month Sun reportedly rejected a $7-billion ($9.40-per-share) offer from International Business Machines, which like Sun builds corporate computer systems.

The acquisition joins Oracle’s enterprise software with Sun’s Solaris operating system and Java programming language. “Our customers benefit as their systems integration costs go down while system performance, reliability and security go up,” Oracle chief executive Larry Ellison said in a prepared statement. “Joining forces with the global leader in enterprise software to drive innovation and value across every aspect of the technology marketplace,” echoed Sun CEO Jonathan Schwartz.

Oracle says it expects Sun to contribute $1.5 billion to its operating profit in 2009, increasing to $2 billion in 2010. The acquisition is expected to add $0.15 per share to its adjusted earnings in the first full year after closing the deal. Shares of Oracle were trading at $18.56 in late morning trading, off $0.50 (2.6%) on the day. Shares of Sun were trading at $9.12, up $2.42 (36.1%) on the day. Shares of IBM stood at $99.29, down $2.02 (1.9%) on the day.

Over the last four fiscal years, Oracle has invested billions of dollars, including $9.4 billion in fiscal 2008, to acquire a number of complementary companies, products, services and technologies. These include BEA Systems Inc. [2008], Hyperion Solutions Corp. [2007], Siebel Systems Inc. [2006] and PeopleSoft Inc. [2005].

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.