Sun Microsystems has acquired the assets of Storage Technology for $4.1 billion in stock, creating a global leader in network computing and data management services that collectively had total annual revenues of more than $13 billion in the past four quarters. StorageTek alone is a $2.2 billion global company.
Following completion of the transaction, which is subject to regulatory approval and is expected to occur in late summer/early fall 2005, StorageTek will become fully integrated within Sun’s organization. In the interim, a joint team with representatives of both companies will develop integration plans that build upon the technological, product and cultural synergies and the best business and product development practices of both companies.
Under the terms of the agreement — approved by both boards of directors — StorageTek stockholders will receive $37 per share in cash for each StorageTek share for an aggregate value of approximately $4.1 billion, including the assumption of employee stock options. Sun expects the transaction to be accretive to non-GAAP earnings in the first 12 months following the closing.
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