In Oracle-Sun deal, analysts predict identity management fallout
As the dust settles following Oracle Corp.’s announced $7.4 billion acquisition of Sun Microsystems Inc. Monday, the combined company is expected to become the top enterprise identity management vendor, leading to a potentially painful transition for customers.
It was widely thought that an acquisition by IBM would end Sun’s months-long search for a buyer. Oracle, however, surprised the industry by agreeing to pay $9.50 per share for the struggling vendor, known for its Solaris-based servers and Java-based software. The total value of the deal is approximately $5.6 billion when considering Sun’s cash and debt.
Oracle expects to turn a quick profit from the acquisition. Oracle President Safra Catz said in a statement that the deal would be "more profitable in per share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined."
Leadership in identity management tools and services
The combined company will be a force to be reckoned with when it comes to identity management. Scott Crawford, research director of security and risk management with Boulder, Colo.-based research firm Enterprise Management Associates Inc., said the deal "brings together two leaders in identity management, but with that leadership comes substantial overlap."
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