Sun Microsystems' $4.1 billion acquisition of Storage Technology is a done deal, giving the server and software company a source of growing revenue and a major storage sales force.
StorageTek shareholders approved the deal Tuesday, and Sun announced Wednesday that the transaction now is closed. The effective price tag for Sun was closer to $3 billion, though, because StorageTek came with about $1 billion in cash of its own.
Sun has been on a modest buying spree to try to flesh out its product portfolio and find new sources of revenue. In its most recent quarter, ending July 1, StorageTek reported net income of $31.2 million on revenue of $549 million.
Several analysts frowned on the StorageTek acquisition, arguing that Sun has had a bad track record acquiring storage companies. But Sun Chief Executive Scott McNealy justified the move, arguing that it gets Sun a major sales force for its own storage products, trusted relationships with many new customers, a solid product line and a better investment return on Sun's cash than just letting it earn interest.
The StorageTek products will fall under the purview of Sun's Data Management Group, formerly called the Network Storage Group but still led by Executive Vice President Mark Canepa.
StorageTek's former CEO, Pat Martin, isn't joining Sun.
Sun's storage group has three business units: the disk business, led by Sun's Kathleen Holmgren; the tape business, led by StorageTek's Nigel Dessau; and the information lifecycle management solutions business, led by StorageTek's Brenda Zawatski. In addition, StorageTek's Michael McLay leads data management sales, and StorageTek's Eula Adams leads data management services.
Join the conversation
Comment replyThe posting of advertisements, profanity, or personal attacks is prohibited. Click here to review our Terms of Use.
Google creates an animated doodle that features a boy, a girl, Google's search engine, and a jump rope. But might there be darker, more analytical, more troubling interpretations to this tale?
The Silicon Valley online payments startup grew by 1,000 percent last year and is hopeful it can repeat that level of growth this year. To do that, it's had to move away from its early friends-and-family roots and embrace small businesses.
Chamtech's spray-on antenna uses a nano material to provide a low-power boost to antenna range. The wireless-in-a-can product may some day bring an end to unsightly cell towers.
EnerG2 opens a plant to make an engineered carbon that will improve performance of energy storage devices and make storage for start-stop hybrid cars less expensive.
Join the conversation