Jan 16, 2008 : Sun to Purchase MySQL for $1 Billion
📅 - Data center solutions provider Sun Microsystems (sun.com) announced on Wednesday that it is looking to purchase open-source developer MySQL AB for about $1 billion to expand into the $15 billion database market. This deal would be Sun's largest software acquisition by far and is expected to close late in the third quarter or early in the fourth quarter of its fiscal 2008.
According to reports, Sun says it will pay about $800 million in cash for all of MySQL stock and assume about $200 million in options as part of the deal to acquire the Swedish company. Sun also reported preliminary results for its fiscal second quarter ended December 30, 2007, saying it expects the revenue to show a rise of about one percent to $3.6 billion.
Analysts from Pacific Crest Securities and Forrester Research say that Sun is looking for new growth engines and if it is successful with MySQL, whose database software is used by Web 2.0 giants YouTube and Facebook, it could mean increased bundled sales of support for MySQL as well as hardware sales. Analysts also believe that Sun is interested in strengthening its position in helping to run the Web and rather than competing with Oracle and IBM, it's looking to go head to head with software giant Microsoft.
Sun's shares rose nearly six percent on NASDAQ today, but analysts say the surge had less to do with the acquisition announcement and likely more to do with Sun's preliminary quarterly results, which showed that the company has faced no impact from the slowing US economy.
Sun has also recently partnered with Macquarie Hosting.
According to reports, Sun says it will pay about $800 million in cash for all of MySQL stock and assume about $200 million in options as part of the deal to acquire the Swedish company. Sun also reported preliminary results for its fiscal second quarter ended December 30, 2007, saying it expects the revenue to show a rise of about one percent to $3.6 billion.
Analysts from Pacific Crest Securities and Forrester Research say that Sun is looking for new growth engines and if it is successful with MySQL, whose database software is used by Web 2.0 giants YouTube and Facebook, it could mean increased bundled sales of support for MySQL as well as hardware sales. Analysts also believe that Sun is interested in strengthening its position in helping to run the Web and rather than competing with Oracle and IBM, it's looking to go head to head with software giant Microsoft.
Sun's shares rose nearly six percent on NASDAQ today, but analysts say the surge had less to do with the acquisition announcement and likely more to do with Sun's preliminary quarterly results, which showed that the company has faced no impact from the slowing US economy.
Sun has also recently partnered with Macquarie Hosting.
Reads: 2530 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/011608_Sun_to_Purchase_MySQL_for_1_Billion.cfm
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