Sun to buy StorageTek for $4.1 billion

By agencies   |   Friday, 03 June 2005, 19:30 IST
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SANTA CLARA: Sun Microsystems Inc. and Storage Technology Corporation today announced that they have entered into a definitive agreement under which Sun will acquire StorageTek. According to a company press release, by bringing a systems approach to Information Lifecycle Management (ILM), Sun will be well-positioned to help customers better manage their growing privacy, security, compliance and policy requirements. 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. "This acquisition is part of an ongoing strategy to respond to customers seeking to rationalize their datacenter purchases -- to free up time and dollars to focus on compliance, architectural integration, security and, of course, the bottom line," said Scott McNealy, chairman and chief executive officer, Sun Microsystems, Inc. StorageTek's workforce will be absorbed into Sun, said McNealy. Sun's storage and networking products, include the Sun StorEdge(TM) 6920 storage system, a platform for virtualization and data services. Coupled with StorageTek's new line of data protection and intelligent archive products, including its Storage Resource Management software and virtual tape solutions, Sun customers will have the ability to implement comprehensive ILM storage infrastructures with intelligence to maximize storage utilization and ensure compliance in enterprise, midrange and workgroup environments, the release informed. Following completion of the proposed transaction, which is expected to occur sometime late second quarter 2005, StorageTek will become fully integrated within Sun's organization. Completion of the transaction is subject to regulatory approval, StorageTek shareholder approval and other customary closing conditions.

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