SUN MICROSYSTEMS TO ACQUIRE HIGHGROUND SYSTEMSSUN MICROSYSTEMS TO ACQUIRE HIGHGROUND SYSTEMSStrategic Move Bolsters Open Systems Storage Management Capabilities
PALO ALTO, Calif -- December 4, 2000 -- Sun Microsystems, Inc. (NASDAQ: SUNW) and HighGround Systems, Inc., today announced that Sun will acquire HighGround Systems. HighGround, a privately held company based in Marlborough, Mass., is a recognized leader in storage resource management solutions for distributed open systems environments. This acquisition complements Sun's existing product line, enabling Sun to extend its strategy of providing easily managed, scalable storage networks. Under the terms of the merger agreement, Sun will acquire HighGround in a stock-for-stock transaction worth approximately $400 million. This acquisition is expected to close in the third quarter which ends March 30, 2001, of Sun's fiscal year 2001. This acquisition is subject to governmental approvals, Highground stockholder approval and customary closing conditions. Following completion of the acquisition, HighGround will become a part of Sun's Network Storage organization, which reports into Executive Vice President Janpieter Scheerder. "The Net Effect will require storage networks that are easy-to-manage, highly available and infinitely scalable. With the acquisition of HighGround Systems, Sun is taking the next step in making that vision a reality and liberating system administrators from the daunting task of managing these complex storage environments," said Ed Zander, President and Chief Operating Officer, Sun Microsystems, Inc. "The HighGround team brings a wealth of experience and knowledge to Sun and will be instrumental in helping build on our strategy of delivering easy-to-manage storage networks." Sun is already a major force in the multi-billion dollar storage market and a leader in the movement toward open storage systems. Drawing on its expertise with complex networked systems, Sun is committed to providing and supporting open, scalable, and manageable storage networks. The acquisition of HighGround Systems will expand Sun's offerings in this area to include new storage resource management capabilities and multi-platform tools for easy management of data and efficient control of resources. "We are really excited about combining the strengths of the HighGround team and Sun. HighGround's products will expand Sun's industry-leading storage offerings and our vision melds perfectly with Sun's focus on network storage manageability," said Dennis Grant, President and Chief Executive Officer, HighGround Systems, Inc. "Sun's salesforce--10,000 strong -- will deliver these critical resource management applications to customers worldwide who need a better way to manage their complex storage environments." About HighGround Systems, Inc.HighGround Systems, Inc. is the leading developer of storage resource management software for open systems. HighGround markets Global Storage Resource Manager (SRM), a comprehensive family of solutions for managing storage resources in today's complex enterprises. Built on Web technology, HighGround offers the industry's most comprehensive storage infrastructure monitoring, analysis, reporting and event management solutions. HighGround customers who depend on storage for their critical e-business operations utilize SRM to efficiently manage growth and change in their storage requirements, lower the total cost of storage ownership, exceed service level agreements, and accurately forecast future storage needs. HighGround can be reached via the World Wide Web at www.highground.com. About Sun Microsystems, Inc.Since its inception in 1982, a singular vision -- The Network Is The Computer -- has propelled Sun Microsystems, Inc. (Nasdaq: SUNW), to its position as a leading provider of industrial-strength hardware, software and services that power the Internet and allow companies worldwide to dot-com their businesses. With $17.6 billion in annual revenues, Sun can be found in more than 170 countries and on the World Wide Web at http://sun.com.
This press release contains forward looking statements that involve risks and uncertainties. These forward looking statements include statements regarding the proposed effect of the acquisition on Sun's participation in the storage resource management market and strategy regarding easy-to-manage scalable storage networks, Sun's commitment regarding open, scalable, and manageable storage networks, the addition of new storage resource management capabilities and multi-platform tools to Sun's storage product offerings, the ability of Sun's salesforce to effectively distribute new products and the expected timing of the transaction. Actual results may vary materially from the results discussed in the forward-looking statements. Factors that may cause such a difference include those risks surrounding the closing of the acquisition, the successful integration of HighGround Systems, Inc. and HighGround products into Sun and Sun's product lines, the ability of Sun to effectively manage and distribute such products and each company's ability to compete in the highly competitive and rapidly changing marketplace and the other risks detailed from time to time in Sun's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, Sun's report on Form 10-K for the fiscal year ended June 30, 2000, Sun's report on Form 10-Q for its fiscal quarter ended October 1, 2000.
Sun, Sun Microsystems, Inc., the Sun Logo, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.PR Contacts for Press and Analysts:
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