Oracle's planned acquisition of Sun Microsystems for $7.4 billion "totally redefines the industry," Sun CEO Jonathan Schwartz told Sun employees Monday morning in a note the executive described as "one of the toughest e-mails I've ever had to write."
Oracle and Sun announced the deal Monday morning with plans to complete the acquisition later this summer.
The e-mail, viewed by Channelweb.com, sought to convey to Sun employees the enormity of the deal with Schwartz saying, "The world changed starting today." But the note doesn't provide any details about what the acquisition means for Sun employees, only promising that "details will be forthcoming as we work together on the integration planning process."
"I do not consider the announcement to be the end of the road, not by any stretch of the imagination," Schwartz said.
The e-mail is reprinted in its entirety below.
This is one of the toughest e-mails I've ever had to write.
It's also one of the most hopeful about Sun's future in the industry.
For 27 years, Sun has stood for courage, innovation, a willingness to blaze trails, to envision and engineer the future. No matter our ups and downs, we've remained committed to those ideals, and to the R&D that's allowed us to differentiate. We've committed to decade-long pursuits, from the evolution of one of the world's most powerful data center operating systems to one of the world's most advanced multicore microelectronics. We've never walked away from the wholesale reinvention of business models, the redefinition of technology boundaries or the pursuit of new routes to market.
Because of the unparalleled talent at Sun, we've also fueled entire industries with our people and technologies, and fostered extraordinary companies and market successes. Our products and services have driven the discovery of new drugs, transformed social media and created a better understanding of the world and marketplace around us. All while we've undergone a near-constant transformation in the face of a rapidly changing marketplace and global economy. We've never walked away from a challenge -- or an opportunity.
So today we take another step forward in our journey, but along a different path -- by announcing that this weekend, our board of directors and I approved the acquisition of Sun Microsystems by the Oracle Corporation for $9.50 per share in cash. All members of the board present at the meeting to review the transaction voted for it with enthusiasm, and the transaction stands to utterly transform the marketplace -- bringing together two companies with a long history of working together to create a newly unified vision of the future.
Oracle's interest in Sun is very clear -- they aspire to help customers simplify the development, deployment and operation of high value business systems, from applications all the way to data centers. By acquiring Sun, Oracle will be well positioned to help customers solve the most complex technology problems related to running a business.
To me, this proposed acquisition totally redefines the industry, resetting the competitive landscape by creating a company with great reach, expertise and innovation. A combined Oracle/Sun will be capable of cultivating one of the world's most vibrant and far-reaching developer communities, accelerating the convergence of storage, networking and computing, and delivering one of the world's most powerful and complete portfolios of business and technical software.
I do not consider the announcement to be the end of the road, not by any stretch of the imagination. I believe this is the first step down a different path, one that takes us and our innovations to an even broader market, one that ensures the ubiquitous role we play in the world around us. The deal was announced today, and, after regulatory review and shareholder approval, will take some months to close -- until that close occurs, however, we are a separate company, operating independently. No matter how long it takes, the world changed starting today.
But it's important to note it's not the acquisition that's changing the world -- it's the people that fuel both companies. Having spent a considerable amount of time talking to Oracle, let me assure you they are single-minded in their focus on the one asset that doesn't appear in our financial statements: our people. That's their highest priority -- creating an inviting and compelling environment in which our brightest minds can continue to invent and deliver the future.
Thank you for everything you've done over the years, and for everything you will do in the future to carry the business forward. I'm incredibly proud of this company and what we've accomplished together.
Details will be forthcoming as we work together on the integration planning process.