Sun to Acquire StorageTek for $4.1 Billion

HostReview.com
Saturday, June 4, 2005; 01:25 PM

Sun Microsystems, Inc. (www.sun.com) and Storage Technology Corporation (www.storagetek.com) today announced that they have entered into a definitive agreement under which Sun will acquire StorageTek.

The combination will create a new global leader in comprehensive network computing and data management which collectively had total annual revenues of more than $13 billion in the past four quarters.

Under the terms of the agreement approved by both boards of directors, StorageTek stockholders will receive $37 per share in cash for each StorageTek share for an aggregate value of approximately $4.1 billion, including the assumption of employee stock options.

"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 rationalize their datacenter purchases -- to free up time and dollars to focus on compliance, architectural integration, security and, of course, the bottom line," said Scott McNealy, chairman and chief executive officer, Sun Microsystems, Inc.

"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 organization 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," added McNealy.

"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.

The products, services and solutions currently offered by Sun and StorageTek complement each other, and form one of the most comprehensive storage and data management portfolios in the industry.

Following completion of the proposed transaction, which is expected to occur in late Summer/early Fall 2005, StorageTek will become fully integrated within Sun's organization.

Completion of the transaction is subject to regulatory approval, StorageTek shareholder approval and other customary closing conditions.