Oracle acquisition of Sun gets green light
US Justice gives thumbs up to deal, with European Commission approval now the last remaining obstacle
Oracle, one of the worlds’ largest financial and business software companies,
has been given the green light by the US Justice Department over its acquisition
of computer hardware and software makers, Sun Microsystems.
Oracle made a bid for Sun, the fourth largest maker of servers, earlier this
year with the deal worth an estimated $7.4bn (£4.5bn) and shareholders expected
to receive $9.40 per share.
When the deal was announced in April, the US Justice Department said they
needed time to consider the implications of the deal before it approved the
move, but the all clear has now been given.
Although this is a boost to the company, the next major hurdle is approval
from the European Commission antitrust regulators.
It is widely speculated that Oracle made the bid to obtain control over Sun’s
Java script, a programming language used in its products. Java can be used for
web applications and updating traditional legacy systems and can be used by PC’s
and Blackberrys’.
Larry Ellison, the chief executive at Oracle, has previously said Java is the
‘the single most important software asset we have ever acquired’ the Financial
Times reported.
Analysts expect the deal to boost Oracle’s share price by approximately $0.15
in the first year of the acquisition and life pro forma operating profits by
$1.5bn to $2bn.
The Oracle bid was announced weeks after a failed bid by software company
IBM.
Further reading:
Oracle bid for Sun Microsystems
