Oracle pays $7.4 billion for Sun

 

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By Stuart Turton

Posted on 20 Apr 2009 at 13:40

Oracle has stepped in to buy Sun for a reported $7.4 billion, after a deal with IBM collapsed.

The companies say the offer was unanimously approved by both boards, and the deal is expected to close this summer after it has cleared the regulatory hurdles.

It was these hurdles that reportedly opened the door for Oracle's surprise bid. An IBM acquisition of Sun was thought to be all but complete a month ago, until IBM got itchy feet regarding a potential antitrust investigation.

Sources close to IBM say it wanted a clause in the deal allowing it to bail out should such an investigation take place. The loophole was refused by Sun, alongside a demand to drop the price, and IBM walked away.

Despite Oracle being Sun's second choice, the company proclaimed itself delighted with the deal: "Oracle and Sun have been industry pioneers and close partners for more than 20 years," says Sun chairman Scott McNealy. "This combination is a natural evolution of our relationship and will be an industry-defining event."