After the recent failed attempt by IBM to takeover Sun Microsystems, Oracle managed to snag the company for a cool $7.4bn or $9.50/share (at 42% premium).

What does this mean for both companies? In a FAQ released by Oracle, it looks like there will be no drastic change in their software suites.

Hardware Business
Oracle will continue to support and grow Sun’s existing hardware business as well as continue to support existing clients and their investments in Sun’s products.

On Linux
Oracle will continue to support its Linux partnerships despite the acquisition of Sun’s Solaris platform.

On MySQL
MySQL will be added into Oracle’s suites of databases. No word so far on what’s going to happen to the management team and whether development on MySQL will be affected.

On Sun
The FAQ mentioned specifically that Sun will remain as a separate business until the acquisition transaction has been completed and that:

• Sun customers should continue to contact Sun for their professional services and support needs.
• There is no expected impact on existing project and service engagements that existing Sun customers have with the company.

Oracle plans to continue Sun’s education program after acquisition and will provide dedicated personnel from key functional areas to assist in the integration between the two companies.

Here are some snipplets from their official press release:

On Java
There are substantial long-term strategic customer advantages to Oracle owning two key Sun software assets: Java and Solaris. Java is one of the computer industry’s best-known brands and most widely deployed technologies, and it is the most important software Oracle has ever acquired. Oracle Fusion Middleware, Oracle’s fastest growing business, is built on top of Sun’s Java language and software. Oracle can now ensure continued innovation and investment in Java technology for the benefit of customers and the Java community.

On Potential Future Earnings
“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,” said Oracle President Safra Catz.

Some additional news stories:
With IBM out, Oracle to buy Sun for $7.4B – Triangle Business Journal
Oracle Agrees to Acquire Sun Microsystems – New York Times

Oracle Releases:
Audio Replay of their conference call with investors

This entry was posted on Monday, April 20th, 2009 at 11:10 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.