Business software giant Oracle has announced plans Monday to buy struggling technology firm Sun Microsystems for $7.4 billion including debt and cash. Both companies have operations in Ireland.
The deal comes after Sun reportedly rejected a takeover bid from computer giant IBM. It will boost Oracle, the number two software firm, by giving it the popular Java programming language and Solaris operating software for computer servers.
The cash acquisition amounts to $9.50 per share of Sun, or $5.6 billion. This rises to $7.4 billion including Sun's debt and cash.
'The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems,' Oracle's chief executive Larry Ellison said.
'Oracle will be the only company that can engineer an integrated system where all the pieces fit and work together so customers do not have to do it themselves,' he added. Sun chairman Scott McNealy hailed the merger as 'an industry-defining event'.
Company officials said Sun's board of directors had unanimously approved the deal, which is subject to approval from the company's stockholders and US regulators.
Sun is known for its open-source software programmes such as OpenOffice.org, OpenSolaris and Java, and was involved in efforts to build a network computer that would use alternatives to Microsoft's operating systems.
