Oracle (Redwood Shores, Calif.) will buy Sun Microsystems (Santa Clara, Calif.) for about $7.4 billion in cash. The move comes after Sun's talks with IBM (Armonk, N.Y.) collapsed over a matter of price, according to an article on Bloomberg.com.
Oracle will now purchase Sun at $9.50 per share and the acquisition is expected to add $1.5 billion to Oracle's operating profit, in the first year, according to a release from the companies.
With the acquisition, Oracle gains Sun's Java technology and the Solaris operating system software. Oracle Fusion Middleware is built on top of Sun's Java language and software. The company said it can now ensure continued innovation and investment in Java technology by bringing Sun into the Oracle fold.
"The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems," said Oracle CEO Larry Ellison, in a statement. "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. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up."