Sun Microsystems has announced it has entered into a definitive agreement to acquire MySQL AB, an icon of the open source movement and developer of one of the world's fastest growing open source databases for approximately $1 billion.

With millions of global deployments, including Facebook, Google, Nokia, Baidu and China Mobile, MySQL will bring synergies to Sun that could change the landscape of the software industry by driving new adoption of MySQL's open source database in more traditional applications and enterprises.

MySQL will also gain new distribution through Sun's channels including its OEM relationships with Intel, IBM and Dell. The acquisition accelerates Sun's position in enterprise IT to now include the $15 billion database market.

MySQL's open source database is widely deployed across all major operating systems, hardware vendors, geographies, industries and application types. The complementary product line-ups will extend MySQL's database reach and are expected to bring new markets for Sun's systems, virtualization, middleware and storage platforms.

More than 100 million copies of MySQL's high-performance open source database software have been downloaded and distributed and an additional 50,000 copies are downloaded daily. This broad penetration coupled with MySQL's strength in Web 2.0, Software as a Service (SaaS), enterprise, telecom and the OEM embedded market make it an important fit for Sun.

Following completion of the proposed transaction, MySQL will be integrated into Sun's Software, Sales and Service organizations and the company's CEO, Marten Mickos, will be joining Sun's senior executive leadership team. The transaction is expected to close in late Q3 or early Q4 of Sun's fiscal 2008.