Oracle to acquire Sun Microsystems for $7.4 billionBy IANS
Monday, April 20, 2009
REDWOOD SHORES - US-based software major Oracle Corp plans to acquire Sun Microsystems for $7.4 billion at $9.50 per share in a cash transaction, the two companies said Monday.
‘We expect this acquisition to be accretive to Oracle’s earnings by at least 15 cents on a non-GAAP (non-generally accepted accounting practices) basis in the first full year after closing,’ Oracle president Safra Catz in a statement.
‘We estimate that the acquired business will contribute over $1.5 billion to Oracle’s non-GAAP operating profit in the first year, increasing to over $2 billion in the second year,’ Catz added.
‘This would make the Sun acquisition more profitable in per share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined.’
Oracle said the acquisition was subject to approval of Sun shareholders.
‘The acquisition of Sun transforms the IT industry,’ said Oracle chief executive Larry Ellison.