sun logo 300x133 Oracle to acquire Sun Microsystems for $7.4 billionSun Microsystems directors have approved Oracle Corporation’s bid of $7.4 billion ($9.50 a share) or $5.6 billion after including debt.

I.B.M. recently concluded talks with Sun after I.B.M. lowered it’s offer from $10 to $9.40 a share.

Oracle Chief Executive Larry Ellison said in a statement:

“The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems. Oracle will be the only company that can engineer an integrated system – applications to disk – where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up.”

The company added that the acquisition of Java “is the most important software Oracle has ever acquired.”

The deal is expected to close this summer, subject to Sun stockholder approval and other regulatory approvals.

More details to come as we get them.