Oracle to acquire Sun Microsystems

Oracle Corporation, an enterprise software company, has entered into a definitive agreement to acquire Sun Microsystems, Inc., a provider of network computing infrastructure solutions, at a price of $9.5 per share in cash. The transaction is valued at approximately $7,400 million or $5,600 million net of Sun's cash and debt. Both the companies are based in the US.

The offer price represents a 42% premium to the closing price of Sun Microsystems common stock on April 17, 2009.

The Board of Directors of both the companies have approved the transaction. The transaction is expected to close at the end of 2009.

Credit Suisse Securities is acting as the financial advisor to Sun Microsystems.

Deal Value (US$ Million) 7400
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Announced: 2009-04-20

Deal Participants

Target (Company)   Sun Microsystems, Inc.
Acquirer (Company) Oracle Corporation

Deal Rationale

The acquisition of Sun combines enterprise software and computing systems, which would enable Oracle to engineer an integrated system - applications to disk - that would result in lowering systems integration costs to its customers. The transaction also adds two key Sun software assets: Java and Solaris to Oracle portfolio.

Bid Premium ($ per share) 42

Related terms: acquisition, advisor, debt, java, securities, software