Oracle to buy Sun for $7.4 billion

Oracle plans to buy Sun Microsystems for $7.4 billion

Oracle is buying Sun Microsystems in deal valued at $7.4 billion (5.08 billion).

The two industry giants have entered into a definitive agreement in which Oracle will acquire Sun stock at $9.50 (6.50) a share.

In an announcement to the press, Larry Ellison, Oracle's chief executive, predicted that through the acquisition, Sun could experience $1.5 billion in annual growth.

He said: "Solaris and Java have been instrumental in Oracle's decision to buy Sun. Oracle can increase investment in Java for its middleware and Solaris is by far the best UNIX technology available with more Oracle databases running on this than any other system."

The focus for the future is on building an integrated system, using the soon-to-be-created joint expertise and providing what Ellison called "an integrated system from database to disk."

Sun's chairman, Scott McNealy, added: "Sun and Oracle have been partners for over 20 years but today marks the next big step. This is truly momentous for the industry as we will be the only totally integrated system available and the largest supplier of Open software."

"There is no question in my mind that this deal redraws the boundaries in the industry."

Previously, it was IBM who was the favourite to buy Sun, but reports claim that the company had lost interest.

Jennifer Scott is a former freelance journalist and currently political reporter for Sky News. She has a varied writing history, having started her career at Dennis Publishing, working in various roles across its business technology titles, including ITPro. Jennifer has specialised in a number of areas over the years and has produced a wealth of content for ITPro, focusing largely on data storage, networking, cloud computing, and telecommunications.

Most recently Jennifer has turned her skills to the political sphere and broadcast journalism, where she has worked for the BBC as a political reporter, before moving to Sky News.