world's number two software company, Oracle Corporation, today agreed to buy hardware company provider Sun Microsystems for US$7.4 bn. in cash, pushing the software company into high-end computing system. "We expect this acquisition to be accretive to Oracle's earnings by at least 15 cents on a non-GAAP basis in the first full year after closing. The business will contribute over $1.5 billion to Oracle's non-GAAP operating profit in the first year, increasing to over $2 billion in the second year," Oracle President Safra Catz said in a statement. The deal comes a month after IBM abandoned its bid to buy Sun. Most analysts see the deal strengthening Oracle's position against IBM. "The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems," Oracle CEO Larry Ellison said. The impact of this acquisition in India, where both the companies are present for a long time, is not clear at the moment. An Oracle spokesperson said they do not comment on country-specific operations. Oracle is one of the largest multinational employers in India with more than 25,000 employees. Sun Microsystem has 1,200 people in India. Historically, Oracle has aways taken inorganic route to grow and expand its business. Enclosed exhibit details some of the largest acquisitions of Oracle.
No comments:
Post a Comment