Sun Microsystems announced today its intentions to acquire popular open-source database company MySQL AB. MySQL had been rumored to be the “hot 2008 IPO”. Sun CEO Jonathan Schwartz said the MySQL acquisition is the “most important acquisition Sun has made in the history of the company.” With a total acquisition price of $1 billion — $800 million in cash in exchange for all privately held MySQL stock, assumption of $200 million in options — this acquisition is an outstanding investment in the open-source software world. Sun has been a big supporter of MySQL competitor PostgresSQL and according to executives the MySQL acquisition does not detract from Sun’s intention to continue to back PostgresSQL, another open-source project.

Jonathan Schwartz stated that the biggest impediment to MySQL has been the lack of global enterprise support. Prior to closing the sale, Sun and MySQL will negotiate an arms’ length agreement allowing Sun to provide Global Enterprise Support for MySQL. Following the acquisiton, MySQL will have the resources of Sun behind it to accelerate the product roadmap. MySQL AB CEO Martin Mickos does not predict a change in the MySQL roadmap, just an acceleration. Mickos will join Sun’s executive management group when the sale closes.

The press release and the blog post that tipped me off both contain the normal acquisition fluff, hugs, and kisses… “Nothing negative will happen… this is an addition not a subtraction, etc.” I hope it’s true. The cultures of these acquired companies are usually what has made them successful. Upon acquisition, these cultures are usually destroyed. Rich Green, head of Sun’s software business, doesn’t think there could be a better cultural match than the one between Sun and MySQL.

The transaction is expected to close late in Q3 or early Q4 2008.