Sun to Acquire MySQL for $1 billion

From: "Derek Rodner" <derek(dot)rodner(at)enterprisedb(dot)com>
To: <pgsql-advocacy(at)postgresql(dot)org>
Subject: Sun to Acquire MySQL for $1 billion
Date: 2008-01-16 14:30:18
Message-ID: 51494DB187D98F4C88DBEBF1F5F6D42303C80E0B@edb06.mail01.enterprisedb.com
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www.sun.com <http://www.sun.com/>

www.mysql.com <http://www.mysql.com/>

Sun Microsystems Announces Agreement to Acquire MySQL, Developer of the
World's Most Popular Open Source Database

Sun Growth Strategy Accelerates With New Position in $15 Billion
Database Market

SANTA CLARA, CA January 16, 2008 Sun Microsystems, Inc. (NASDAQ: JAVA)
today announced it has entered into a definitive agreement to acquire
MySQL AB, an open source icon and developer of one of the world's
fastest growing 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. Today's
announcement reaffirms Sun's position as the leading provider of
platforms for the Web economy and its role as the largest commercial
open source contributor.

With millions of global deployments including Facebook, Google, Nokia,
Baidu and China Mobile, MySQL will bring synergies to Sun that will
change the landscape of the software industry by driving new adoption of
MySQL's open source database in more traditional applications and
enterprises. The integration with Sun will greatly extend the commercial
appeal of MySQL's offerings and improve its value proposition with the
addition of Sun's global services organization. MySQL will also gain new
distribution through Sun's channels including its OEM relationships with
Intel, IBM and Dell.

"Today's acquisition reaffirms Sun's position at the center 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," said Jonathan Schwartz, CEO and
president, Sun Microsystems. "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."

MySQL's open source database is widely deployed across all major
operating systems, hardware vendors, geographies, industries and
application types. The complementary product line-ups will extend
MySQL's database reach and are expected to bring new markets for Sun's
systems, virtualization, middleware and storage platforms.

"The combination of MySQL and Sun represents an enormous opportunity for
users and organizations of all sizes seeking innovation, growth and
choice," said Marten Mickos, CEO, MySQL. "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. We are tremendously excited to work
with Sun and the millions of members of the MySQL open source ecosystem
to continue to deliver the best database for powering the modern Web
economy."

MySQL's open source database is the "M" in LAMP - the software platform
comprised of Linux, Apache, MySQL and PHP/Perl often viewed as the
foundation of the Internet. Sun is committed to enhancing and optimizing
the LAMP stack on GNU/Linux and Microsoft Windows along with OpenSolaris
and MAC OS X. The database from MySQL, OpenSolaris and GlassFish,
together with Sun's Java platform and NetBeans communities, will create
a powerful Web application platform across a wide range of customers
shifting their applications to the Web.

More than 100 million copies of MySQL's high-performance open source
database software have been downloaded and distributed and an additional
50,000 copies are downloaded daily. This broad penetration coupled with
MySQL's strength in Web 2.0, Software as a Service (SaaS), enterprise,
telecom and the OEM embedded market make it an important fit for Sun.
With MySQL, Sun will have the ability to deepen its existing customer
relationships and create new opportunities with companies seeking the
flexibility and ease-of-use of open source systems.

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 best 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.

The management teams of both companies will host a media and analyst
conference call today at 10:00 am EST, 7:00 am PST. The call can be
accessed at http://www.sun.com/investors. For those unable to listen to
the live conference call, a telephone replay will be available for one
week following the call by dialing (888) 566-0103 or outside of the U.S.
by dialing (402) 998-0958. No passcode is required to access the replay.

About MySQL

MySQL AB develops and supports a family of high-performance, affordable
database products. The company's flagship offering is 'MySQL
Enterprise', a comprehensive set of production-tested software,
proactive monitoring tools, and premium support services. MySQL is the
world's most popular open source database software. Many of the world's
largest and fastest-growing organizations use MySQL to save time and
money powering their high-volume Web sites, business-critical systems
and packaged software -- including industry leaders such as Yahoo!,
Alcatel-Lucent, Google, Nokia, YouTube and Booking.com. With
headquarters in the United States and Sweden -- and operations around
the world -- MySQL AB supports both open source values and corporate
customers' needs. For more information about MySQL, please visit
www.mysql.com.

About Sun Microsystems, Inc.

Sun Microsystems develops the technologies that power the global
marketplace. Guided by a singular vision -- "The Network is the
Computer" -- Sun drives network participation through shared innovation,
community development and open source leadership. Sun can be found in
more than 100 countries and on the Web at http://sun.com.

MySQL and the MySQL logo are registered trademarks of MySBL AB in the
United States, the European Union and other countries.

Sun, Sun Microsystems, the Sun logo, OpenSolaris, GlassFish, Java,
Netbeans and The Network is the Computer are registered trademarks of
Sun Microsystems in the United States and other countries.

Safe Harbor

This press release contains forward-looking statements that involve
risks and uncertainties. These forward-looking statements include
statements regarding the expected benefits resulting from the
acquisition, Sun's strategy and commitments, Sun's integration plans for
the acquisition, the expected timing for closing the acquisition and the
impact on Sun's financials of the acquisition. Such statements are just
predictions and involve risks and uncertainties such that actual results
and performance may differ materially. Factors that might cause such
differences include the failure to (1) receive regulatory approval, (2)
successfully integrate MySQL and its employees into Sun and achieve
expected synergies, (3) accurately forecast the acquisition-related
restructuring costs and allocation of the purchase price to in-process
research and development, goodwill and other intangibles acquisition
related inventory and other asset adjustments, as well as the impact of
equity-based compensation expense associated with FAS 123R, (4) compete
successfully in this highly competitive and rapidly changing
marketplace, and (5) retain key employees. These and other risks are
detailed from time to time in Sun's periodic reports that are filed with
the Securities and Exchange Commission, including Sun's annual report on
Form 10-K for the fiscal year ended June 30, 2007 and its quarterly
report on Form 10-Q for the fiscal quarter ended September 30, 2007. Sun
assumes no obligation to, and does not currently intend to, update these
forward-looking statements.

Derek M. Rodner

Director, Product Strategy

EnterpriseDB Corporation

732.331.1333 office

484.252.1943 cell

www.enterprisedb.com

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