Oracle to buy Sun for $7.4bn

Business software maker Oracle is to buy server and software maker Sun, the two companies announced on Monday.

In a joint statement, Oracle said the transaction was valued at approximately $7.4bn, or $5.6bn net of Sun's cash and debt. Sun's stock will be bought at $9.50 in cash per share. The deal has been unanimously approved by Sun's board but still needs to be approved by Sun's shareholders and financial regulators, the companies said.

The deal means Oracle will be taking over Java, the language and software that underpins Oracle Fusion Middleware. In their announcement, the companies said that Java is "the most important software Oracle has ever acquired".

The enterprise application company also picks up the Solaris operating system, and Oracle will now be able to optimise its database for the high-end features of Solaris, the companies said. "Oracle is as committed as ever to Linux and other open platforms, and will continue to support and enhance our strong industry partnerships", according to the announcement.

Sun chairman Scott McNealy, noting that Oracle and Sun have been partners for more than 20 years, said in the statement: "This combination is a natural evolution of our relationship and will be an industry-defining event."

At the start of April, Sun reportedly rejected a buyout offer from IBM, which apparently made a formal bid of $9.40 per share or less.

Original article: Oracle to buy Sun for $7.4bn from ZDNet UK