Oracle To Buy Sun Microsystems for $9.50/Shr In Cash

In a stunning turn of events, Oracle (ORCL) this morning announced perhaps its most aggressive acquisition yet, agreeing to acquire Sun Microsystems (JAVA) for $9.50 a share in cash, or $7.4 billion. Net of balance sheet cash and debt, the deal is worth $5.6 billion. The news follows the reported recent collapse of talks between IBM (IBM) and Sun.

Oracle said it expects the deal to be at least 15 cents accretive to earnings on a non-GAAP basis in the first full year after closing, contributing over $1.5 billion to non-GAAP profit in the first year, and over $2 billion in the second year.

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