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After a failed merger with IBM Corp., Sun Microsystems Inc. has been acquired by software giant Oracle Corp. of Redwood Shores, Calif., in a cash deal valued at as much as $7.4 billion.
In a letter from Oracle president Charles Phillips, the deal gives Oracle two key software assets of Sun -- Java and Solaris -- and opens new opportunities in the space, particularly with Java, which is the foundation of Oracle’s Fusion Middleware product. However, Phillips also said Oracle will continue to be committed to Linux, a competitor of Solaris, and continue to support its relationships within that community.
Sun employs “a little bit less” than 2,000 people in New England, according to a spokeswoman. Mass High Tech’s industry directory shows that Oracle employs 680 people in the Bay State, and 42,000 people worldwide.
The deal has Oracle paying $9.50 per share for Sun’s stock, including debt. The price is $2.81 above Sun’s closing price of $6.69 on Friday. The deal is also 10 cents more than IBM’s public offer of $9.40 per share.
While the acquisition of a hardware company by a software company has been rare in the industry, Sun and Oracle have a long-standing relationship, with much of Oracle’s software running on Sun servers.
The deal has been approved by the Sun Microsystems board, according to company statements.
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