Santa Clara, Calif. – Server maker Sun Microsystems Inc. completed its $4.1 billion acquisition of Louisville’s Storage Technology Corp. on Wednesday as it seeks to capture a bigger slice of the $65 billion market for keeping and maintaining data.
Under the deal, stockholders of the company popularly known as StorageTek will receive $37 per share.
The total of $4.1 billion includes the assumption of employee stock options.
“Few companies are better positioned to help enterprises manage the complexities of information management,” Sun chief executive Scott McNealy said. “StorageTek knows how to store it, and Sun knows how to put that data to work better than any other company on the planet.”
The companies have not said whether the merger will result in layoffs or consolidations of facilities, but analysts expect some cuts to avoid duplication in support and administrative areas.
Santa Clara, Calif.-based Sun announced the acquisition June 2.
On Tuesday, StorageTek shareholders overwhelmingly approved the deal.
Shares of Sun closed at $3.80, up 7 cents, in Wednesday trading on the Nasdaq Stock Market. StorageTek shares closed at $36.95, down 4 cents. Trading of StorageTek stock has been suspended, Sun said.
The combined company would have had $13.3 billion in sales over the past 12 months. Sun and StorageTek products also hold 36 percent of the world’s archived data, the companies said.
StorageTek is now part of Sun’s Data Management Group, which is led by executive vice president Mark Canepa.
Storage Tek’s former CEO, Pat Martin, has not joined the combined company.
