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Sun Microsystems Announces Agreement to Acquire MySQL, Developer of the World's Most Popular Open Source Database
January 16 2008
SANTA CLARA, CALIF. - January 16, 2008 - Sun Microsystems, Inc. (NASDAQ: JAVA) today announced it has entered into a definitive agreement to acquire MySQL, an open source icon and developer of one of the world's fastest growing open source databases for $1 billion, composed of cash and assumed options. The acquisition accelerates Sun's position in enterprise IT to now include the $15 billion database market. Today's announcement reaffirms Sun's position as a leading provider of platforms for the Web economy and its role as the largest commercial open source contributor.With millions of global deployments including Facebook, Google, Nokia, Baidu and China Mobile, MySQL brings synergies to Sun that will change the landscape of the software industry by driving new adoption of MySQL's open source database in more traditional applications and enterprises. The integration with Sun will greatly extend the commercial appeal of MySQL's offerings and improve its value proposition with the addition of Sun's global services organization. MySQL also gains new distribution through Sun's channels, including its OEM relationships with Intel, IBM and Dell.
"Today's acquisition reaffirms Sun's position at the center of the web. In synch with our growth plan, MySQL allows us to continue to invest in the commercial services and technologies demanded by the highest scale enterprises and the most explosive growth companies globally," said Jonathan Schwartz, CEO and president, Sun Microsystems. "MySQL's employees and complementary culture along with its near ubiquity across the Web economy make it an ideal fit with Sun's open and innovative approach to network computing. With this announcement we are increasing our engagement with and contribution to the open source communities at the heart of innovation on the Internet."
MySQL's open source database is widely deployed across all major operating systems, hardware vendors, geographies, industries and application types. The complementary product line-ups will extend MySQL's database reach and bring new markets for Sun's systems, virtualization, middleware and storage platforms to create a highly competitive solution for rapidly growing organizations looking to leverage the power of the Network to grow their business.
"The combination of MySQL and Sun represents an enormous opportunity for customers seeking innovation, competition and choice," said CEO MySQL. "Sun's approach and business model complements MySQL's and the combination represents everything a modern organization needs to build the highest scale and performance and most efficient service infrastructure available on the Internet. We are excited about the growth opportunities presented by this integration and are looking forward to continuing the innovation and community engagement at the heart of both companies."
MySQL's open source database is the M in LAMP - the software platform comprised of Linux, Apache, MySQL and PHP/Perl often viewed as the foundation of the Internet. Sun is committed to enhancing and optimizing the LAMP stack on GNU/Linux, Microsoft Windows, along with OpenSolaris and MAC OS X. The database from MySQL, OpenSolaris and GlassFish, together with Sun's Java platform and NetBeans communities, create a powerful Web application platform across a wide range of customers shifting their applications to the Web.
More than 100 million copies of MySQL's high-performance open source database software have been downloaded and distributed and an additional 50,000 copies are downloaded daily. This broad penetration coupled with MySQL's strength in Web 2.0, SaaS, enterprise, telecoms and the OEM embedded market make it an important fit for Sun. With MySQL, Sun has the ability to deepen its existing customer relationships and create new opportunities with companies seeking the flexibility and ease-of-use of open source systems.
Following completion of the proposed transaction MySQL will be integrated into Sun's Software organization. MySQL CEO, Marten Mickos, will be joining Sun's senior executive leadership team. In the interim, a joint team with representatives from both companies will develop integration plans that build upon the technical, product and cultural synergies and the best business and product development practices of both companies. MySQL is headquartered in Cupertino, CA, and Uppsala, Sweden and has 400 employees in 25 countries.
The terms of the deal include $780 million in cash and approximately $200 million for the assumption of MySQL stock options that will be converted into JAVA shares. The deal is expected to close in late Q3 or early Q4 of Sun's fiscal 2008. Completion of the transaction is subject to regulatory approval and other customary closing conditions. The deal is expected to be accretive to FY10 earnings per share on a GAAP basis.
