The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun’s cash and debt.
“We expect this acquisition to be accretive to Oracle’s earnings by at least 15 cents on a non-GAAP basis in the first full year after closing. We estimate that the acquired business will contribute over $1.5 billion to Oracle’s non-GAAP operating profit in the first year, increasing to over $2 billion in the second year. This would make the Sun acquisition more profitable in per share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined,” said Oracle President Safra Catz.
Sun’s Java and Solaris are the two key acquisition of Oracle. Acquiring Java is ones of Oracle most important assets for now, as Java is one of the computer industry’s best-known brands and most widely deployed technologies. In addition, Oracle Fusion Middleware (fastest Oracle growing business) is developed on Java language and software.
Another key acquisition is the Sun Solaris platform, with Oracle known for their database business that is mostly runs and supported by Solaris operating system. We can see how Oracle can optimize the Oracle database with Solaris, ditching some technical barrier when they don’t owns the Solaris, therefore we can expect some high-end features of Oracle database on Solaris platform.
It’s hard to tell the full extent of how Oracle’s acquisition of Sun Microsystems will impact the open source industry. The sure thing about here is changes, the transition will be difficult and there will be some cultural conflicts and friction as Oracle takes in Sun.