Sun stumps up US$4.1bn for StorageTek

Sun Microsystems has unveiled a blockbuster US$4.1bn cash bid for information lifecycle management specialist StorageTek. The companies claim that the deal will create a global leader in network computing and data management.

  • E-Mail
By  Stuart Wilson Published  June 2, 2005

Sun Microsystems has unveiled a blockbuster US$4.1bn cash bid for information lifecycle management specialist StorageTek. The companies claim that the deal will create a global leader in network computing and data management. The two companies combined sales for the last four quarters stand in excess of US$13bn. “Sun’s technical and financial strength puts us in a great position to act as a consolidator in the IT industry. This acquisition is part of an ongoing strategy to respond to customers seeking to rationalise their datacentre purchases to free up time and dollars to focus on compliance, architectural integration, security and, of course, the bottom line,” explained Scott McNealy, chairman and chief executive officer at Sun. “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,” he added. “Together, the two companies enjoy financial strength, a complete systems offering, an impressive list of blue chip customers and global reach. We look forward to welcoming the StorageTek workforce into the Sun organisation and are confident that the combined enterprise, with its broader range of products, services and capabilities will significantly expand our customer base and opportunities for growth,” McNealy concluded. The two companies claim that the product, services and solutions that they currently offer complement each other and will allow the combined entity to create one of the most comprehensive storage and data management portfolios in the industry. “StorageTek’s decision to combine with Sun reflects our determination to act in the best interests of our customers, shareholders, employees and other constituents,” said Patrick J. Martin, chairman, president and chief executive officer, StorageTek. “By joining forces with Sun to form a combined enterprise with greatly enhanced technological, operational and financial resources, we are positioning that enterprise for accelerated growth and solid performance for years to come. I strongly believe that for StorageTek and all our constituents, this is the right transaction, with the right partner, for the right reasons, at the right time,” Martin added.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code