Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Oracle to Acquire Sun Microsystems for $7.4B

By Paul McDougall, InformationWeek

Business software maker Oracle said Monday that is has agreed to acquire Silicon Valley neighbor Sun Microsystems for $7.4 billion.

Under the terms of the deal, Oracle (NSDQ: ORCL) will pay $9.50 per share for Sun's common stock. Oracle said it expects Sun's operations will boost earnings per share by at least 15 cents in the first full year after the deal closes while contributing more than $1.5 billion in first-year profits.

The agreement is subject to closing conditions and could require a nod from trustbusters in the Justice Department if it's deemed that the tie-up represents a threat to competition in the computing industry.

Word of the merger comes just days after IBM (NYSE: IBM) reportedly backed off acquisition talks with Sun after executives from the two companies failed to agree on a price.

  • 1