Search /
Docfinder:
Advanced search  |  Help  |  Site map
RESEARCH CENTERS
SITE RESOURCES
Click for Layer 8! No, really, click NOW!
Networking for Small Business
TODAY'S NEWS
While Heartbleed distracts, hackers hit US universities
How Apple's billion dollar sapphire bet will pay off
US to vote on sharp increase in broadband subsidies
iPhone 6 rumor rollup for the week ending April 18
NSA spying revelations have tired out China's Huawei
Arista co-founder may have switch maker by its jewels
Apple kicks off public OS X beta testing
Open source pitfalls – and how to avoid them
AT&T's expanded 1 Gbps fiber rollout could go head to head with Google
BlackBerry Releases BES 10 Security Update to Address 'Heartbleed' Flaw
Verizon: Web apps are the security punching bag of the Internet
Cisco announces security service linked with new operations centers
Dell launches virtual storage accelerator, aims to boost SAN performance
Free OS X Mavericks now powers half of all Macs
Even the most secure cloud storage may not be so secure, study finds  
3D printing will transform these five industries
Most but not all sites have fixed Heartbleed flaw
NEC launches face-recognition protection for PCs
Hundreds of medical professionals targeted in multi-state tax scam
Super-high frequencies could one day deliver your mobile video
Americans cool with lab-grown organs, but not designer babies
IT Departments Not Losing Ground to Managed Service Providers (Yet)
Where's my gigabit Internet, anyway?
IE6: Retired but not dead yet
Enterprise who? Google says little about Apps, business cloud services in Q1 report
/

Sun buys Cobalt for $2 billion

Today's breaking news
Send to a friendFeedback


Sun Microsystems, in order to add a server appliance offering to its server portfolio, announced Tuesday that it will acquire Cobalt Networks in a stock-for-stock merger valued at $2 billion.

Mountain View, California-based Cobalt supplies server appliances, such as its Cobalt Qube, Cobalt Cache, Cobalt RaQ and Cobalt NASRaQ, to businesses, ISPs and educational institutions for Web hosting. These appliances deliver network-based services.

Under the terms of the merger agreement, each share of Cobalt common stock will be converted into 0.5 Sun shares, resulting in a purchase price of $2 billion. According to the statement, Sun expects to complete the purchase of Cobalt during the second quarter of its 2001 financial year, which ends Dec. 31, 2000. The closing of the acquisition is subject to standard governmental approvals, Cobalt shareholder approval and customary closing conditions.

After the merger is completed, Cobalt will become the server appliance business unit of Sun's Network Service Provider organization, the companies said.

Through the merger, Cobalt expects to increase sales of server appliances, while Sun expects to establish their company in the low-end server appliance market, according to the statement.

In midday trading on Tuesday, Sun shares were trading at $113.56, down from Monday's closing price of $115.25 but up from the day's low of $112.56.

This year, Sun has also purchased Innosoft International to strengthen its iPlanet E-Commerce solutions, operated with America Online's Netscape Communications Corp.

Sun, in Palo Alto, Calif., is at www.sun.com. Cobalt, based in Mountain View, Calif., is at www.cobalt.com.

RELATED LINKS

Apply for your free subscription to Network World. Click here. Or get Network World delivered in PDF each week.

Get Copyright Clearance
Request a reprint or permission to use this article.


NWFusion offers more than 40 FREE technology-specific email newsletters in key network technology areas such as NSM, VPNs, Convergence, Security and more.
Click here to sign up!
New Event - WANs: Optimizing Your Network Now.
Hear from the experts about the innovations that are already starting to shake up the WAN world. Free Network World Technology Tour and Expo in Dallas, San Francisco, Washington DC, and New York.
Attend FREE
Your FREE Network World subscription will also include breaking news and information on wireless, storage, infrastructure, carriers and SPs, enterprise applications, videoconferencing, plus product reviews, technology insiders, management surveys and technology updates - GET IT NOW.