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Sun Moves To Buy StorageTek

The $4.1 billion deal will create an industry leader in information-life-cycle management, Sun says.
Sun Microsystems is in the process of acquiring Storage Technology Corp., a vendor of data storage systems, in a deal valued at $4.1 billion, the two companies said Thursday morning.

Sun says the acquisition of StorageTek, as the company is widely known, will strengthen its position in the market for information- life-cycle-management technology. The deal will create a company that recorded more than $13 billion in sales of network computing and data-management products in the past four quarters, according to Sun.

Sun says the two companies' products are complementary. Sun, for example, says it can couple its Sun StorEdge 6920 data-storage system with StorageTek's new line of data protection and intelligent data archiving products, such as its Storage Resource Management software and virtual tape systems.

Under the definitive agreement approved by both companies' boards, StorageTek stockholders will receive $37 for each share of StorageTek stock, for an aggregate value of $4.1 billion. The companies expect to complete the deal in late summer or early fall. The deal must be approved by StorageTek shareholders and is also subject to regulatory approval.

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