Sun Goes to Oracle Not IBM

So, after IBM Declines to buy Sun, Oracle has stepped in to the fray (via CNet News). Oracle President Safra Catz said in a statement:

 

 We expect this acquisition to be accretive to Oracle’s earnings by at least 15 cents on a non-GAAP basis in the first full year after closing. 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. 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.

The deal puts Sun common stock at $9.50 per share in cash, valuing the transaction at approximately $7.4 billion, or $5.6 billion net of Sun’s cash and debt. What happens to MySQL will be interesting to see. Oracle has been spreading far beyond database technology in recent years, stretching into ERP, OSS and a host of other areas. The Sun acquisition will spread their foot print into the open source and operating system arena. It will be interesting to see what they do with it.

The deal brings together Oracle’s database software and MySQL under one roof. It also puts Java in the hands of Oracle. The transaction is subject to stockholder approvals and, if approved, would complete during the summer. More of Larry Ellison’s statment here on the next web.