Monday, March 18, 2024

Oracle to Buy Sun Microsystems

Datamation content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.


Oracle Corp (NASDAQ: ORCL) said on Monday it will buy Sun Microsystems Inc (NASDAQ: JAVA) for $9.50 a share, valuing the high-end computer server maker at more than $7 billion.

The surprise announcement from the two companies comes after deal talks between IBM (IBM.N) and Sun fell apart earlier this month, and sources with knowledge of the matter had said Sun had turned down IBM’s offer to pay up to $9.40 a share.

Sun shares jumped 37.5 percent to $9.20 in premarket trading, while Oracle shares fell 4.5 percent to $18.34.

The price of $9.50 a share values Sun at about $7.1 billion based on about 745 million shares outstanding, according to Sun’s latest regulatory filings.

The companies said in a statement the transaction is valued at about $7.4 billion, or $5.6 billion net of cash and debt.

Copyright 2009 Reuters. Click for restrictions.

Subscribe to Data Insider

Learn the latest news and best practices about data science, big data analytics, artificial intelligence, data security, and more.

Similar articles

Get the Free Newsletter!

Subscribe to Data Insider for top news, trends & analysis

Latest Articles