According to a statement, the merger will create a new global leader in comprehensive network computing and data management, which collectively had total annual revenues of more than $13 billion in the past four quarters.
Under the terms of the agreement approved by both boards of directors, StorageTek stockholders will receive $37 per share in cash for each StorageTek share for an aggregate value of approximately $4.1 billion, including the assumption of employee stock options.
Following completion of the proposed transaction, which is expected to occur in late summer or early autumn 2005, StorageTek will become fully integrated within Sun’s organisation.
In the interim, a joint team with representatives of both companies will develop integration plans that build upon the technological, product and cultural synergies and the best business and product development practices of both companies.
Completion of the transaction is subject to regulatory approval, StorageTek shareholder approval and other customary closing conditions.