dcsimg

Oracle to Buy Sun Microsystems

Download the authoritative guide: Cloud Computing 2018: Using the Cloud to Transform Your Business

SHARE
Share it on Twitter  
Share it on Facebook  
Share it on Google+
Share it on Linked in  
Email  

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.

Submit a Comment

Loading Comments...

NewsletterDATAMATION DAILY NEWSLETTER

SUBSCRIBE TO OUR IT MANAGEMENT NEWSLETTER