Recession be damned — it looks like Oracle will still manage to scrounge up enough cash to take Sun Microsystems off the table. Early last month IBM withdrew its $7.5 billion acquisition offer and as most people presumed, Sun was probably kicking itself. All is hardly lost however, as Oracle has nearly matched the offer and Sun won’t be making the same mistake twice. While it’s not a done deal until the papers are signed and the lawyers take their cut, Oracle has agreed to the $7.4 billion acquisition agreement which amounts to about $5.6 billion net of Sun’s cash and debt. According to Sun, the deal is expected to add approximately $1.5 billion to Oracle’s operating profit in the first year and around $2 billion in year two. Oracle recorded $17.8 billion in software sales last year and with Sun’s resources and product line at its disposal, expect that figure to balloon in spite of harsh economic times.
Oracle agrees to $7.4 billion Sun Microsystems acquisition
Updated Dec 19th, 2018 6:18PM EST
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Zach Epstein has been the Executive Editor at BGR for more than 15 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.
His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.
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