Sun Microsystems, Inc. (NASDAQ: JAVA) announced it has entered into a definitive agreement to acquire MySQL AB, an open source icon 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. With millions of global deployments including Facebook, Google, Nokia, Baidu and China Mobile, MySQL will bring synergies to Sun that will help drive new adoption of MySQL’s open source database in more traditional applications and enterprises. The integration with Sun will 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. MySQL’s open source database is the “M” in LAMP – the software platform comprised of Linux, Apache, MySQL and PHP/Perl. 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 Web application platform across a wide range of customers shifting their applications to the Web. 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. http://www.mysql.com, http://sun.com