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What are Business
Intelligence Editors researching at the moment ...
Oracle
Corporation and Sun Microsystems have entered into a
definitive agreement under which Oracle will acquire Sun
common stock for $9.50 per share in cash. The transaction is
valued at approximately $7.4 billion, or $5.6 billion net of
Sun's cash and debt. "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," said Oracle President Safra Catz.
"The acquisition of Sun transforms the IT industry,
combining best-in-class enterprise software and
mission-critical computing systems," said Oracle CEO Larry
Ellison. "Oracle will be the only company that can engineer
an integrated system - applications to disk - where all the
pieces fit and work together so customers do not have to do
it themselves. Our customers benefit as their systems
integration costs go down while system performance,
reliability and security go up."
There are substantial long-term strategic customer
advantages to Oracle owning two key Sun software assets:
Java and Solaris. Java is one of the computer industry's
best-known brands and most widely deployed technologies, and
it is the most important software Oracle has ever acquired.
Oracle Fusion Middleware, Oracle's fastest growing business,
is built on top of Sun's Java language and software. Oracle
can now ensure continued innovation and investment in Java
technology for the benefit of customers and the Java
community.
The Sun Solaris operating system is the leading platform for
the Oracle database, Oracle's largest business, and has been
for a long time. With the acquisition of Sun, Oracle can
optimize the Oracle database for some of the unique,
high-end features of Solaris. Oracle is as committed as ever
to Linux and other open platforms and will continue to
support and enhance our strong industry partnerships.
"Oracle and Sun have been industry pioneers and close
partners for more than 20 years," said Sun Chairman Scott
McNealy. "This combination is a natural evolution of our
relationship and will be an industry-defining event."
"This is a fantastic day for Sun's customers, developers,
partners and employees across the globe, joining forces with
the global leader in enterprise software to drive innovation
and value across every aspect of the technology
marketplace," said Jonathan Schwartz, Sun's CEO, "From the
Java platform touching nearly every business system on
earth, powering billions of consumers on mobile handsets and
consumer electronics, to the convergence of storage,
networking and computing driven by the Solaris operating
system and Sun's SPARC and x64 systems. Together with
Oracle, we'll drive the innovation pipeline to create
compelling value to our customer base and the marketplace."
"Sun is a pioneer in enterprise computing, and this
combination recognizes the innovation and customer success
the company has achieved. Our largest customers have been
asking us to step up to a broader role to reduce complexity,
risk and cost by delivering a highly optimized stack based
on standards," said Oracle President Charles Phillips. "This
transaction will preserve and enhance investments made by
our customers, while we continue to work with our partners
to provide customers with choice."
The transaction is anticipated to close this summer.
Source: Oracle Corporation 04 09
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