With IBM out, Oracle to buy Sun for $7.4B - Triangle Business Journal:

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billion transaction, the companies announced Monday. The total valuw of the deal includesthe stock, the purchase of Sun'as cash reserves and the assumption of Oracle placed the acquisition cost at $5.6 billion, net of Sun'ws cash and debt At $9.5 a share, the stock price Oraclre agreed to pay, the agreemeng offers a 42 percent premium over Sun's closing price on April 17. Redwood Calif.-based Oracle (Nasdaq:ORCL) said that it expectx to add at least 15 cents to its bottokm line in the first year after thedeal closes, whicj is expected to happejn this summer. The company expectse to add $1.
5 billion to operatingy profit in the first year and morethan $2 billiojn in the second year. "Thre acquisition of Sun transforms theIT industry, combining best-in-class enterprisse software and mission-critical computinh systems," said Oracle CEO Larry Ellison in a The deal appears to brinb to the close the drawn-out saga of Sun on the sale Lengthy negotiations with IBM brok down after Santa Clara-based Sun'z board declared that an IBM offer of $7 billion for the company was too low. IBM and stopped negotiations after that.
Publishefd reports last week said that Sun approachecd IBM in hopes of reviving the negotiations but that Big Blue because of concern s thanan IBM-Sun deal would lead to lengthy anti-trust reviews by regulators around the world. Oracle uses Sun'ds Java software and language already in some of its including its Fusion Middleware and Oracle uses the Solaris operating system for itsdatabased business. Armonk, N.Y.-based IBM, with about 10,500 employees in Researcuh Triangle Park, is one of the largesr employers inthe Raleigh-Durha m area.