Sun Acquires Cobalt Networks

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 ( common stock will be converted into 0.5 Sun (, 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.