Oracle Buys Sun Microsystems for $7.4 Billion

Oracle Corp., a large software solutions provider, said on Monday that it would buy server maker and software designer Sun Microsystems for $7.4 billion. The move will help Oracle to more efficiently compete against both International Business Machines and Hewlett Packard, who can offer both hardware and software products.

“The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems. Oracle will be the only company that can engineer an integrated system – applications to disk – where all the pieces fit and work together so customers do not have to do it themselves,” said Larry Ellison, chief executive of Oracle.

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.