It’s official — Oracle has bought Sun Microsystems for approximately $7.4 billion dollars, or $9.50 per share in cash. The net value of the acquisition, discounting Sun’s cash and debt, is $5.6 billion. Oracle expects that the merger will bring in profits of $1.5 billion in the first year and about $2 billion in the second year. As such, Oracle is excited with its new acquisition.
One can say that the two companies have the right fit for each other, as both companies are involved in enterprise systems, though Oracle focuses mostly on the software side, whereas Sun has been a leading name in server systems solutions. It’s also worth noting that Oracle and Sun have a long-standing partnership, where Oracle’s database has been using Sun’s Solaris as a vessel for its database software for more than 20 years. Oracle claims that with the acquisition of Sun, they would be able to further research, development, and innovation in these areas from which the customers are the main beneficiaries.
What Oracle will be acquiring
The main acquisitions of Oracle with the merger are Sun’s Java and Solaris products. Java is a platform used worldwide, while Solaris is a major name in enterprise systems. Oracle also now owns the open-source database platform mysql. According to Oracle CEO Larry Ellison, the main advantage with this deal is that this will bring forth an integration of technology, such as “application on disk” and other integrated technology products that can bring everything the customers need in one package. This makes the setup of their products simpler and their application sure and exact. Oracle also foresees lessened costs in terms of system integration and installation, and more system security and stability. This merge in technology allows Oracle to fully expand its current software applications to regions where Sun has dominance over. Though still to be left to the future, Oracle also claims that it will preserve the open-source services of Sun, and utilizing it to create more innovations in solutions and services. Though some may doubt as to the reality of this, only the future will tell what the actual conditions might be.
Be that as it may, there is much celebration from both Sun and Oracle, and some excitement in the tech world regarding the innovations that this merger will produce. Based from the statements and the initiatives set out by both companies, one can divine a “sunny” future from the acquisition of Sun Microsystems by Oracle.