Oracle buys Sun for $7.4 billion

Business software manufacturer Oracle has said it is in a deal to buy computer hardware and software maker Sun Microsystems for $7.4 billion.┬á┬á The deal comes a month after IBM abandoned its bid to buy Sun, and Oracle said the buy "transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems." ┬á Although best known for its computer servers, Sun was also the developer of the Java programming language, and created the Solaris operating system. ┬á "Oracle and Sun have been industry pioneers and close partners for more than 20 years," said Sun chairman Scott McNealy. ┬á "This combination is a natural evolution of our relationship and will be an industry-defining event." ┬á Sun said its board of directors had unanimously agreed the deal, which is expected to be completed this summer after approval from shareholders and government regulators. ┬á Computer industry analyst Robert Jakobsen said "It could make sense. The deal would strengthen Oracle's position against IBM. Oracle has done a good job on acquisitions it has done earlier." ┬á Oracle said the takeover of Sun would boost its profits by more than $1.5 billion in the first year and by $2 billion in the second. ┬á "It gives Oracle a very strong operating system. It gets hardware, which should be interesting to see since Oracle doesn't make things,ÔÇØ said fellow computer industry analyst Shannon Cross. "It's going to give them access to customers who weren't using the Oracle database."