MySql to be Acquired by Sun

In a move to expand into the $15 billion database market, data center solutions provider Sun Microsystems announced on Wednesday that it is planning to acquire open-source developer MySQL AB for around $1 billion This transaction would be Sun’s leading software acquirement and is anticipated to close late in the third quarter or early in the fourth quarter of its fiscal 2008.

Sun stated that it will pay around $800 million in cash, covering all MySQL stock, and acquire approximately $200 million in options as part of the deal to purchase the Swedish company, according to reports. Sun also reported opening results for its fiscal second quarter ended December 30, 2007, saying it anticipates the revenue to show an increase of about one percent to $3.6 billion.

Sun is looking for new growth engines, according to analysts from Pacific Crest Securities and Forrester Research, and if it is victorious with MySQL, whose database software is used by Web 2.0 giants YouTube and Facebook, it could mean improved package sales of support for MySQL including hardware sales.

Analysts also think that Sun is interested in escalating its position in assisting in operating within the Web and rather than challenging Oracle and IBM, it’s looking to challenge software giant Microsoft.

Sun’s shares rose almost six percent on NASDAQ today, but analysts say the rush was probably due to Sun’s preliminary quarterly results, which showed that the company has faced no impact from the slowing US economy, rather than the acquisition announcement.