Sun Microsystems, Inc. has entered into a definitive agreement to acquire MySQL AB, an open source provider and developer of open source databases for approximately $1 billion in total consideration. The acquisition accelerates Sun's position in enterprise IT to now include the $15 billion database market. Following completion of the proposed transaction, MySQL will be integrated into Sun's software, sales, and service organizations and the company's CEO, Marten Mickos, will be joining Sun's senior executive leadership team. In the interim, a joint team with representatives from both companies will develop integration plans that build upon the technical, product, and cultural synergies and the business and product development practices of both companies. MySQL is headquartered in Cupertino, CA and Uppsala, Sweden and has 400 employees in 25 countries.
As part of the transaction, Sun will pay approximately $800 million in cash in exchange for all MySQL stock and assume approximately $200 million in options. The transaction is expected to close in late Q3 or early Q4 of Sun's fiscal 2008. Completion of the transaction is subject to regulatory approval and other customary closing conditions. The deal is expected to be accretive to FY10 operating income on a GAAP basis.