Sun completes StorageTek purchase

As expected, Sun Microsystems Wednesday completed its $4.1 billion purchase of Storage Technology, a deal that was first announced June 2.

Under the terms of the agreement, StorageTek stockholders will receive $37 in cash for each StorageTek share, according to a Sun news release.

Sun nabbed StorageTek in its largest-ever cash acquisition in an effort to beef up its storage and data-management portfolio. StorageTek's main business has been in tape-automation and backup appliances, but the company has expanded its product line in the past year to offer disk-based backup and information lifecycle management (ILM) software.

According to Sun, the revenue of both companies combined for the last 12 months was $13.3 billion, and 36 percent of the world's total archived data is stored on products from the two companies.

StorageTek now becomes part of Sun's Data Management Group, formerly called the Network Storage Group. The organization is led by Mark Canepa, a Sun executive vice president. The group consists of three business units, one each for disk, tape and ILM products, according to Sun.

Canepa's team is made up of former StorageTek services, sales, and product development and marketing executives, as well as members of Sun's own storage team. However, former StorageTek Chief Executive Officer Pat Martin will not be joining the combined company, according to Sun.

Martin, who holds a Ph.D, has expressed interest in pursuing teaching opportunities and also will be joining Qwest Communications International Inc.'s board of directors in October, a Sun spokeswoman said Wednesday.