News
Sun Acquires Cobalt Networks
- By Scott Bekker
- September 21, 2000
Sun Microsystems Inc. and Cobalt Networks Inc. announced
that they have entered into an agreement in which Sun will acquire Cobalt in a
stock-for-stock merger. Cobalt is a supplier of server appliance products. The
acquisition accelerates Sun’s entry into the growing server appliance market
and bolsters its long-standing focus on network computing.
Under the terms of the merger agreement, each share of
Cobalt (www.cobalt.com) common stock will
be converted into 0.5 Sun (www.sun.com), resulting
in an aggregate purchase price of approximately $2.0 billion. The acquisition
will be accounted for as a purchase, and is expected to be completed during Sun’s
second quarter of fiscal 2000, which ends December 31, 2000. – Isaac Slepner
About the Author
Scott Bekker is editor in chief of Redmond Channel Partner magazine.