Louisville – Colorado workers at Sun Microsystems and StorageTek greeted Thursday’s merger agreement with a mix of surprise, optimism and concern.
Some acknowledged layoffs could follow. But the shakeout – if one comes – most likely will not unfold for months.
Joe Lusso, a 26-year Storage Tek veteran who works in facilities maintenance at the Louisville headquarters, was surprised by the announcement but noted “this goes on all the time in the technology industry.”
“I never know if I’ll have a job tomorrow,” said Lusso, 57, of Broomfield.
A StorageTek worker who declined to give his name as he left the company’s campus said, “It leaves us in limbo. Nobody knows the ramifications at this point.”
Across U.S. 36, at Sun’s sprawling campus at Broomfield’s Interlocken business park, the mood was brighter.
Jim Heredia of Longmont said “everyone (at Sun) was caught by surprise.” Heredia, who works in Sun’s data center, said “it’s a good marriage” that “will help us tremendously.”
Bill Head, 49, who works in sales support, said “the merger is a good thing” for both companies. He added that layoffs are possible in any acquisition, but “I won’t fret about it.”
StorageTek, which makes tape drives and software used to store data, employs 7,000 people worldwide, including 2,000 in Colorado.
Local workers handle the bulk of the company’s business operations, including engineering, marketing, public relations, product development and sales.
Sun Microsystems, based in Santa Clara, Calif., is the world’s third-largest maker of computer servers. It employs 32,000 people worldwide, including 2,700 in Colorado.
StorageTek employees were informed of the sale through e-mails and meetings with managers, spokesman Joe Fuentes said. A companywide meeting is scheduled for today at the firm’s 42,000-square-foot wellness center in Louisville.
“We talked to them first thing this morning,” Fuentes said of StorageTek workers. “It’s important to us.”
StorageTek, whose board already has approved the $4.1 billion deal, will receive cash of $37 per share, an 18 percent premium over Wednesday’s closing price.
One StorageTek engineer, a 12-year veteran, said he sold his shares Thursday morning after the deal went public, yielding a handsome profit.
“It’s a little sad to see it go, but it was the prudent thing to do,” said the engineer, who declined to reveal his name. “I don’t think the company is leaving the state, so we’ll probably have an even stronger presence here.”
Staff writer Will Shanley can be reached at 303-820-1473 or wshanley@denverpost.com.
