Sun Microsystems Inc., the third-largest maker of server computers, on Wednesday announced its plan to purchase open-source software developer MySQL for about $1 billion, apparently giving a significant boost to its efforts to tap into the rapidly expanding market for database software for Web-based companies.
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Headquartered in Santa Clara, California, Sun Microsystems announced yesterday said it would acquire the Swedish company for $800 million in cash and will also assume $200 million in MySQL options as part of the deal.
The deal that lets Sun enter the $15 billion market for database software is touted by Jonathan Schwartz, the Sun chief executive and president, as “the most important acquisition Sun has made in the history of the company.”
MySQL’s acquisition would also give Sun a foothold in the database software market, and will help spread Sweden-based company’s software to large corporations, some of which are among Sun's biggest customers of servers and software, Schwartz added.
"We are probably the largest open-source company on the Internet," Schwartz said during an interview. "With MySQL, we gain access to an extraordinary customer list and breathtaking user community around the world."
Closely held MySQL is known for its open-source database software, used by Google Inc. Nokia Corp., Baidu Inc. and Facebook Inc.
According to Marten Mickos, the MySQL chief executive who will become an adviser to Schwartz, MySQL’s 400 employees will now work for Sun, and the company will fit well in the new organization.
"Sun's culture and business model complements MySQL's own by sharing the same ideals that we have had since our foundation - software freedom, online innovation and community and partner participation," said Mickos.
The server and software maker Sun expects to close the acquisition in either the third or fourth quarter of fiscal 2008.
Shares of Sun jumped 3.7 percent to $15.53 on the NASDAQ.
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