Sun Microsystems announced it has entered into a definitive agreement to acquire MySQL AB for approximately $1 billion in total consideration.
The acquisition accelerates Sun's position in enterprise IT to now include the $15 billion database market.
With millions of global deployments including Facebook, Google, Nokia, Baidu and China Mobile, MySQL will bring 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 will also gain new distribution through Sun's channels including its OEM relationships with Intel, IBM and Dell.
MySQL's open source database is widely deployed across all major operating systems, hardware vendors, geographies, industries and application types.
"The combination of MySQL and Sun represents an enormous opportunity for users and organizations of all sizes seeking innovation, growth and choice," said Marten Mickos, CEO, MySQL. "Sun's culture and business model complements MySQL's own by sharing the same ideals that we have had since our foundation -- software freedom, online innovation and community and partner participation. We are tremendously excited to work with Sun and the millions of members of the MySQL open source ecosystem to continue to deliver the best database for powering the modern Web economy."
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 said that it would enhance and optimize the LAMP stack on GNU/Linux and Microsoft Windows along with OpenSolaris and MAC OS X.
Following completion of the proposed transaction, MySQL will be integrated into Sun's Software, Sales and Service organizations and the company's CEO, Marten Mickos, will be joining Sun's senior executive leadership team.
As part of the transaction, Sun will pay approximately $800 million in cash in exchange for all MySQL stock and assume approximately $200 million in options. The transaction 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 operating income on a GAAP basis.