Sun and Oracle announced today a definitive agreement for Oracle to acquire Sun for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun’s cash and debt. An agreement that will make of Oracle the first competitor to IBM by having Sun technologies in hardware, Java, Operation system (Solaris), Open Office and even the most popular open source database for the web MySQL !

“The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems,” said Oracle CEO Larry Ellison. “Oracle will be the only company that can engineer an integrated system – applications to disk – where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up.”

The deal could have very positive effect on Oracle business as mentioned Oracle CEO, especially by providing full solution from hardware, operation system, Java, in addition to Oracle business and database solutions. But until the deal close and real result of this acquisition become visible, things might gets worse before it gets better.