We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,258 News Articles

Oracle buys Sun in $7bn deal

Acquisition announced after IBM deal falls through

Oracle has announced plans to buy Sun Microsystems in a deal valued at $7.4bn (£5.07bn).

The deal comes just weeks after a reported deal by IBM to buy Sun fell apart.

Oracle will acquire Sun common stock for $9.50 per share in cash in the deal, which is valued at $5.6 billion net of Sun's cash and debt.

Oracle is no stranger to big acquisitions, and has bought a series of software firms including PeopleSoft.

"The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems," said Oracle CEO Larry Ellison.

"Oracle will be the only company that can engineer an integrated system - applications to disk - where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up."

Oracle president Safra Catz said Oracle expects the acquisition to ass 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 $1.5bn to Oracle's non-GAAP operating profit in the first year, increasing to over $2bn in the second year" said Catz. "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."

Sun Chairman Scott McNealy welcomed the deal. "This combination is a natural evolution of our relationship and will be an industry-defining event."

See also:

Computerworld UK

IDG UK Sites

What is Google Photos? How to back up and share all of your photos for free

IDG UK Sites

Why I think the Apple Watch sucks and you'd be mad to buy it

IDG UK Sites

Swatch launches a colourful smartwatch

IDG UK Sites

New Apple TV 2015 release date rumours: TV streaming service delayed, hand gesture interface being...