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Oracle buys Sun

Well that didn’t take long.

Oracle is buying Sun, in a deal worth about $7.4 billion, the company said in a statement released early Monday. Oracle is offering $9.50 per share in cash. The transaction is valued at about $7.4 billion, or $5.6 billion net of Sun’s cash and debt. 

According to the release, dropping just a few weeks after IBM-Sun talks cratered:

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 news is both shocking and not. Sun and Oracle used to be joined at the hip with Sun hardware running a ton of Oracle databases. Then as Oracle moved to embrace Linux, and commodity hardware providers like Dell, relations cooled notably.

And, given Oracle CEO Larry Ellison’s penchant of buying companies and markets, the news makes some sense.

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Great recap Emily, thanks for including JCS in your tweet highlights.
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