Sun Acquires StorageTek for $4.1 Billion
Just one day after the company began a rebranding effort to revitalize its public image, Sun Microsystems on Thursday announced that it had entered into an agreement to acquire StorageTek in a deal worth $4.1 billion.
StorageTek shareholders will receive $37 per share in cash as part of the deal. According to Sun, it expects the deal to positively affect its bottom line by the fall of this year.
When the merger completes, the combined companies will offer customers, "the most complete range of products, services and solutions available for securely managing mission-critical data assets," according to the two companies.
"With this announcement, Sun solidifies its leadership position, with the highest volume computing platforms, the most comprehensive data and identity management solutions, and when combined with StorageTek, an unmatched ability to earn the confidence of customers as they develop, deploy and manage information assets throughout their entire lifecycle," Sun CEO Scott McNealy said in a statement.
The companies say that their product lineups complement each other, and together form a comprehensive storage and data solution for customers. StorageTek will become fully integrated into Sun, which the companies expect to occur by the fall.
McNealy also hinted that more acquisitions may be in the company's future. "Sun's technical and financial strength puts us in a great position to act as a consolidator in the IT industry," he argued.
Completion of the acquisition is subject to regulatory and approval by Sun and StorageTek shareholders.