Sun Microsystems (Nasdaq: SUNW) has agreed to acquire SeeBeyond (Nasdaq: SBYN). Sun is a Global Strategic partner and SeeBeyond is a software partner of Siebel Systems. Under the terms of the agreement SeeBeyond stockholders will receive $4.25 in cash for each share they own. The total value of the deal, including the assumption of employee stock options, is $387 million. That price represents a little over 2.3 times trailing 12 month revenues.
Sun made the acquisition of SeeBeyond, an enterprise integration platform, because it believes the acquisition will create will be the industry's most complete offering for the development, deployment and management of enterprise applications.
"This acquisition strengthens our software portfolio and opens new growth and partnering opportunities worldwide," said Scott McNealy, Sun's chairman and chief executive officer. "Our recent acquisition activity reinforces our strategy to be a consolidator of innovations in the IT industry."
Sun continues to integrate more services into its software portfolio. The Solaris Operating System, which ships with all Sun software suites, is the foundation of this integrated set of services - called the Java Enterprise System. The Java Enterprise System includes: Sun Java System Application Platform Suite, Sun Java System Communication Suite, Sun Java System Identity Management Suite, Sun Java System Availability Suite and Sun Java System Web Infrastructure Suite. With SeeBeyond, Sun will extend the Java Enterprise System platform with a sixth suite, the Sun Java System Integration Suite.
Completion of the transaction is expected to occur in early Fall 2005.