Database giant Oracle announced Monday(20th April 2009) that it will buy Sun Microsystems for $9.50 per share—roughly $7.4 billion. The two companies reached an agreement after an unsuccessful bid by IBM fell short at $9.40 per share. Oracle has significantly expanded its reach over the past decade through a series of major acquisitions which include PeopleSoft, Hyperion, Siebel, and BEA. The addition of Sun to Oracle's roster will have far-reaching implications and a profound impact on the technology industry.
Oracle President Safra Catz said in a statement:
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.
