Network computer maker Sun Microsystems Inc., which has lost market share to rivals IBM Corp. and Dell Inc., on Thursday boosted its presence in the data storage market Thursday, shelling out $4.1 billion in cash for Storage Technology Corp.
Sun CEO Scott McNealy, who told analysts his company has the cash and a strong financial position, said that with companies facing increased financial service compliance regulations and increased data requirements in healthcare, the transaction made sense.
Sun posted a $9 million quarterly loss in April, down from a $760 million loss a year earlier that included the costs of a real estate restructuring and job cuts.
Sun said it expects the Storage Technology acquisition to add to earnings before items in the first 12 months following the deal's close, which the company expects in several months. — David Ehrlich
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