(17 January 2008 2:00 pm)

MUMBAI: Sun Microsystems, the third-largest maker of server computers, has agreed to acquire Swedish open-source database house MySQL for $1 billion.

According to an official announcement, around $800 million cash will be paid in exchange for MySQL stock and the remaining $200 million in options will be taken on by Sun.

Sun CEO Jonathan Schwartz said, "This acquisition reaffirms Sun's position at the centre of the global web economy. Supporting our overall growth plan, acquiring MySQL amplifies our investments in the technologies demanded by those driving extreme growth and efficiency, from Internet media titans to the world's largest traditional enterprises."

This move will let Sun enter into the $15 billion database market, up against companies like Microsoft, IBM and Oracle.

As of now, more than 100 million copies of MySQL's open source database software have been downloaded and distributed, and an additional 50,000 copies are downloaded daily. This broad penetration in Web 2.0, Software as a Service (SaaS) enterprise, telecom and the OEM-embedded market make it an important fit for Sun.

With MySQL, Sun will have the ability to deepen its existing customer relationships and create new opportunities with companies seeking the flexibility and ease of use of open-source systems.