Sun enters database market with MySQL purchase
Sun Microsystems to buy open source database developer for $1 billion
Sun Microsystems is set to enter the database market, with the acquisition of MySQL AB. Sun announced today that it will acquire the open source database developer in a deal worth $1 billion.
The acquisition has been made as part of Sun's aim to create an integrated web platform. MySQL is used by a large number of web companies, including Facebook and Google, and the developer has strong Web 2.0 credentials and expertise in the Software as a Service (SaaS) sector, enterprise and telecom.
Sun will pay $800 million in cash and assume $200 million in options under the deal, which is due to close in Sun's fiscal Q3 or Q4 2008.
MySQL will be integrated into Sun's Software, Sales and Service organizations once the deal is complete, and Sun will also expand distribution of MySQL through its OEM partners Intel, IBM and Dell.
Jonathan Schwartz, CEO and president, Sun Microsystems said: "Today's acquisition reaffirms Sun's position at the centre of the global Web economy. Supporting our overall growth plan, acquiring MySQL amplifies our investments in the technologies demanded by those driving extreme growth and efficiency, from Internet media titans to the world's largest traditional enterprises.
"MySQL's employees and culture, along with its near ubiquity across the Web, make it an ideal fit with Sun's open approach to network innovation. And most importantly, this announcement boosts our investments into the communities at the heart of innovation on the Internet and of enterprises that rely on technology as a competitive weapon," he added.
Deena Habib, Marketing Manager for Sun Microsystems Middle East and Norther Africa commented on the deal: “This acquisition will benefit Sun Microsystems worldwide as particularly the MENA region. We are quite excited about the new prospects this could bring, especially because we looking at expanding our customer base and can go after new key accounts.”