Louisville – It was just another ordinary day on Tape Drive here Tuesday, after shareholders of Storage Technology Corp. approved the company’s acquisition by Sun Microsystems Inc.
Few employees at Storage Tek corporate headquarters even knew the $4.1 billion deal had been OK’d, but they saw the merger with the Santa Clara, Calif., computer giant as a positive move, approving particularly of the new access to Sun’s large customer base.
StorageTek, founded by former IBM workers in 1969, makes tape drives and network-management and backup software for businesses and government agencies. The company employs 7,000 people worldwide, including 2,000 in Colorado.
“If the company says it is a good thing, it’s a good thing,” said a 27-year StorageTek engineer who declined to give his name. “I don’t think you can control what’s happening (the consolidation) in the current business environment.”
Ninety-nine percent of the shareholders who voted cast ballots in favor of the $37-a- share cash buyout by Sun. Of the 108.4 millioncq outstanding shares, 71.6 percent of them were voted.
The acquisition is expected to close todaywed, and it will be the last day of trading for Storage Tek, which will be delisted from the New York Stock Exchange. Thursday will be the first day of business for the combined companies.
$3.73cq on the Nasdaq.
StorageTek has yet to announce any layoffs, but it’s expected that overlapping administrative job functions would be eliminated. One employee in the advanced manufacturing division said Tuesday that workers in finance and human resources were concerned about their jobs.
Across U.S. 36, employees at the Sun campus were also in the dark on the counting of the shareholder votes in New York.
Employees, who are generally instructed not to speak to the media, said morale was high and that they had not heard any news about layoffs at either Sun or Storage Tek.
Sun is the world’s third-largest maker of computer servers. It employs 32,000 people worldwide, including 2,700 in Colorado.
After the companies worked together for 10 years, Sun announced June 2 that it would acquire Storage Tek. StorageTek has been an icon in Colorado as one of the oldest and most successful technology start ups.
The StorageTek name will stick around, becoming the brand for Sun’s storage products that come from its Data Management Group. Mark Canepa, head of Sun’s storage division, is expected to lead the group.
Martin, who was recently named to Qwest’s board of directors, will step down when the deal is finalized.
Staff writer Kimberly S. Johnson can be reached at 303-820-1088 or kjohnson@denverpost.com.
