Oracle Corp. said Monday it has agreed to pay $5.6 billion to buy Sun Microsystems Inc., one of the Denver area's largest private high-tech employers, after earlier Sun talks with IBM Corp. fell through.Santa Clara, Calif.-based Sun (NASDAQ: JAVA) employs roughly 2,200 at its Broomfield offices.
The deal -- which is expected to be completed this summer -- appears to end a drawn-out attempt to sell Sun, which earlier in the year had unsuccessful negotiations with International Business Machines Corp. (NYSE: IBM) that reportedly broke down at the last minute.
The companies valued the deal at $7.4 billion, including cash and debt. At $9.50 a share, the price is a 42 percent premium over Sun's closing price on Friday.
Redwood City, Calif-based Oracle (NASDAQ: ORCL) expects to add at least 15 cents to its bottom line from the deal in the first year. The company expects to add $1.5 billion to operating profit in the first year and more than $2 billion in the second year.
"The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems," said Oracle Chief Executive Larry Ellison in a statement.
Oracle uses Sun's Java software and language already in some of its products including its Fusion Middleware business and it uses the Solaris operating system for its database business.
Disclosure none
IBM is a has been.
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