Sun Completes Acquisition of Cobalt Networks

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Sun Microsystems (Nasdaq: SUNW) Thursday morning announced the completed acquisition of Cobalt Networks for a 1-to-1 exchange of Sun's common stock.

Adjusting for the 2-for-1 forward stock-split effected by Sun on Wednesday, the exchange is estimated at $2 billion Sever developer becomes server appliance business unit of Sun.

With the close of the deal, Cobalt, well known for its consumer-level line of caching appliances, becomes the server appliance business unit of Sun.

"This acquisition fits into Sun's family of server appliance solutions," says Diane Carlini, spokesperson for Sun. "The acquisition is a very interesting development for service providers looking for hosting services because Cobalt develops easy-to-use, turn key appliances that will compliment Sun's high-end server line."

In early afternoon trading Sun was down .25 to an even $44.

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This article was originally published on Dec 7, 2000
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