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Saturday, January 19, 2008

Server maker's purchase of the open-source software maker expected to close in late 2008.

Sun Microsystems to buy MySQL for $1B
Sun Microsystems Inc. has agreed to buy open-source software maker MySQL AB for $1 billion, beefing up the server maker's database offerings with a company whose technology is used by some of the world's biggest Web sites.

Santa Clara-based Sun, in separate announcements before the market opened, said its second quarter revenue would narrowly exceed Wall Street estimates. It also said profit would fall at the high end of analysts' expectations. The company revealed its preliminary results ahead of schedule.

Sun is paying $800 million in cash and assuming $200 million in options to acquire MySQL. The Swedish company makes open-source database software used by companies such as online search leader Google Inc (GOOG, Fortune 500)., popular Internet hangout Facebook Inc. and Finnish phone maker Nokia Corp (NOK).

Sun said the deal will help spread MySQL's software to large corporations, which have been the biggest customers of Sun's servers and software, and boost its distribution through Sun's relationships with other server makers such as IBM Corp (IBM, Fortune 500). and Dell Inc. (DELL, Fortune 500)

The acquisition, expected to close in the third or fourth quarter, takes pressure off Sun to spend some of the cash it's been accumulating. It also bolsters its software offerings with a well-known name in Internet data retrieval.

Sun also said it expects net income of between $230 million to $265 million, or 28 cents to 32 cents per share. Analysts surveyed by Thomson Financial were expecting profit of between 22 and 38 cents.

Sun (JAVA, Fortune 500) said it expects to notch about $3.6 billion in sales during the second quarter. Analysts were expecting, on average, $3.58 billion in sales.

Sun Microsystems

Sun Microsystems, Inc. (NASDAQ: JAVA)[4] is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982.[5] The company is headquartered in Santa Clara, California (part of Silicon Valley), on the former west campus of the Agnews Developmental Center.

Sun is known as the developer of technologies such as the Java platform and NFS, and as a key promoter of open systems in general and UNIX in particular; it has recently emerged as one of the leading proponents and contributors of open source software.[6] Its products include computer servers and workstations based on its own SPARC processors as well as AMD's Opteron and Intel's Xeon processors; storage systems; and, a suite of software products including the Solaris Operating System, developer tools, Web infrastructure software, and identity management applications. Sun's manufacturing facilities are located in Hillsboro, Oregon and Linlithgow, Scotland.

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