Summary
Oracle Corporation (ORCL) filed an 8-K on July 14, 2009, to provide an update on its pending acquisition of Sun Microsystems. The company confirmed that, based on preliminary results from Sun's quarter ending June 30, 2009, Oracle anticipates the acquisition to be accretive to its non-GAAP earnings by at least 15 cents in the first full year post-closing. Furthermore, Oracle estimates that the acquired Sun business will contribute over $1.5 billion to Oracle's non-GAAP operating profit in the first year, with this figure projected to rise to over $2 billion in the second year. This filing is primarily an update on the expected financial impact of the Sun acquisition, which is still subject to stockholder and regulatory approvals.
Key Highlights
- 1Oracle expects the Sun Microsystems acquisition to be accretive to non-GAAP earnings by at least $0.15 in the first full year after closing.
- 2The acquired Sun business is projected to contribute over $1.5 billion to Oracle's non-GAAP operating profit in the first year post-acquisition.
- 3Oracle estimates the Sun business's contribution to non-GAAP operating profit to increase to over $2 billion in the second year after closing.
- 4The acquisition remains contingent on stockholder and regulatory approvals, as well as other customary closing conditions.
- 5The filing includes a cautionary statement regarding forward-looking statements, highlighting potential risks and uncertainties that could affect the transaction and future results.
- 6Additional information regarding the merger, including Sun's proxy statement, is available via SEC filings.