Oracle to buy Sun Microsystems for $7.4 billion
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Information technology company Oracle is buying Sun Microsystems in a cash deal the company valued at $7.4 billion. The deal comes after IBM abandoned its bid to buy the networking equipment maker.
Redwood Shores-based Oracle will buy Sun shares for $9.50 each. The price represents a 42 percent premium to Sun’s Friday closing stock price of $6.69. Net of Sun’s cash and debt, the transaction is valued at $5.6 billion, Oracle says. IBM had offered to buy Sun for $9.40 per share, but acquisition talks fell apart earlier this month after Sun canceled IBM’s exclusive negotiating rights, and IBM withdrew its offer.
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