SeaBeyond acquisition to boost Sun Microsystems' presence in business integration - update 3

06/29/05 - newratings.com

NEW YORK, June 29 (newratings.com) – Network computer manufacturer Sun Microsystems (SUNW) Tuesday announced that it has agreed to buy SeaBeyond Technology Corp for $387 million in cash. SeeBeyond Technology is engaged in the development of software that helps to stitch together different computer systems.

The acquisition would enable Sun Microsystems to expand in the high growth business integration market. The acquisition would give Sun Microsystems access to SeeBeyond Technology's 2,000 customers worldwide. As per the terms of the agreement, Sun Microsystems will pay $4.25 a share, representing a nearly 30% premium to SeeBeyond Technology’s closing share price of $3.28 on the Nasdaq on Monday. The two companies had last year agreed to market their products jointly. Sun Microsystems had agreed to incorporate SeaBeyond Technology’s Integrated Composite Application Network software suite with its Java Enterprise System. The acquisition is expected to be completed in the next four-to-five months. SeeBeyond Technology posted revenues of about $167 million for the year ended March 2005. Sun Microsystems’ share price appreciated $0.05 to $3.74, while SeeBeyond Technology’s share price rose $1.01 or 31% to $4.29 on Tuesday.