Sun Microsystems, Inc. announced it has entered into a definitive agreement to acquire MySQL AB, an open source icon and developer of one of the world's fastest growing open source databases for approximately $1 billion in total consideration. The acquisition accelerates Sun's position in enterprise IT to now include the $15 billion database market. Today's announcement reaffirms Sun's position as the leading provider of platforms for the Web economy and its role as the largest commercial open source contributor.

With millions of global deployments including Facebook, Google, Nokia, Baidu and China Mobile, MySQL will bring synergies to Sun that will change the landscape of the software industry by driving new adoption of MySQL's open source database in more traditional applications and enterprises. The integration with Sun will greatly extend the commercial appeal of MySQL's offerings and improve its value proposition with the addition of Sun's global services organization. MySQL will also gain new distribution through Sun's channels including its OEM relationships with Intel, IBM and Dell.

MySQL's open source database is widely deployed across all major operating systems, hardware vendors, geographies, industries and application types. The complementary product line-ups will extend MySQL's database reach and are expected to bring new markets for Sun's systems, virtualization, and middle ware and storage platforms.

"The combination of MySQL and Sun represents an enormous opportunity for users and organizations of all sizes seeking innovation, growth and choice," said Marten Mickos, CEO, and MySQL. "Sun's culture and business model complements MySQL's own by sharing the same ideals that we have had since our foundation -- software freedom, online innovation and community and partner participation. We are tremendously excited to work with Sun and the millions of members of the MySQL open source ecosystem to continue to deliver the best database for powering the modern Web economy."

MySQL's open source database is the "M" in LAMP - the software platform comprised of Linux, Apache, MySQL and PHP/Perl often viewed as the foundation of the Internet. Sun is committed to enhancing and optimizing the LAMP stack on GNU/Linux and Microsoft Windows along with Open Solaris and MAC OS X. The database from MySQL, Open Solaris and Glass Fish, together with Sun's Java platform and Net Beans communities, will create a powerful Web application platform across a wide range of customers shifting their applications to the Web.

More than 100 million copies of MySQL's high-performance open source database software have been downloaded and distributed and an additional 50,000 copies are downloaded daily. This broad penetration coupled with MySQL's strength in Web 2.0, Software as a Service (SaaS), enterprise, telecom and the OEM embedded market make it an important fit for Sun. With MySQL, Sun will have the ability to deepen its existing customer relationships and create new opportunities with companies seeking the flexibility and ease-of-use of open source systems.

Following completion of the proposed transaction, MySQL will be integrated into Sun's Software, Sales and Service organizations and the company's CEO, Marten Mickos, will be joining Sun's senior executive leadership team. In the interim, a joint team with representatives from both companies will develop integration plans that build upon the technical, product and cultural synergies and the best business and product development practices of both companies. MySQL is headquartered in Cupertino, CA and Uppsala, Sweden and has 400 employees in 25 countries.

As part of the transaction, Sun will pay approximately $800 million