Oracle said the boards of both companies unanimously approved the transaction, which is subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions.
The per share price of $9.5 is 42 per cent more than Sun's closing price on April 17.
"This (the deal) would make the Sun acquisition more profitable in per share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined," Catz said.
"There are substantial long-term strategic customer advantages to Oracle owning two key Sun software assets: Java and Solaris. Java is one of the computer industry's best-known brands and most widely deployed technologies, and it is the most important software Oracle has ever acquired," the statement said.
The Sun Solaris operating system is the leading platform for the Oracle database, Oracle's largest business, and has been for a long time.
With the acquisition of Sun, Oracle can optimise Oracle database for some of the unique, high-end features of Solaris.
"Oracle and Sun have been industry pioneers and close partners for more than 20 years," Sun Chairman Scott McNealy said.
The board of directors of Sun Microsystems has unanimously approved the transaction. The deal is anticipated to close this summer, subject to Sun stockholders' approval, certain regulatory approvals and customary closing conditions.
