Oracle buys Sun


Oracle buys Sun

Simon Quicke
Oracle looks set to pick up Sun Microsystems after the highly acquisitve vendor said it would pay out in cash at $9.50 a share.

IBM had been in discussions with Sun with expectations that the talks could potentially resume but Oracle's move, which has sent Sun shares rocketing, looks set to end that avenue of discussion.

It emerged earlier this month that Sun was a serious acquisition target and according to reports on Reuters the impact of the Oracle suggested purchase has already been recieved with a share surge of 27% this morning.

$9.50 a share totals $7.4bn, slightly above what IBM had been offering for Sun when negotiations between the two collapsed earlier this month.

In a statement Larry Ellison, CEO of Oracle, said that it would strengthen its position in the market allowing it to offer integrated solutions.

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

Ellison claimed Oracle would now be the only company that could 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," he added.
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