Acquisition: Sun Microsystems, Inc. to Acquire NetDynamics, Inc.; New Software Offerings Will Accelerate Adoption of the Java Platform in the Enterprise

Edge: Work-Group Computing Report, July 6, 1998

Sun Microsystems, Inc., Wednesday announced that it has signed a definitive agreement to acquire NetDynamics, Inc., a privately-held company specializing in enterprise network applications and application server software and tools.

"With the acquisition of NetDynamics, Sun will gain a critical component for the enterprise solutions that companies working on next generation network applications are demanding," said Edward J. Zander, Chief Operating Officer of Sun Microsystems, Inc. "As we have said all along, Sun is committed to providing customers with the best implementations of the Java technology. Using this technology as the foundation, we will add our implementation of Enterprise JavaBeans to provide our customers with the solutions they are seeking."

"As a recognized industry leader and innovator, Sun has the resources and complementary technologies needed to increase the adoption of Java technology in the enterprise, and establish the application server as an architectural foundation for network computing," said Zack Rinat, president and chief executive officer of NetDynamics, Inc. "As part of Sun, NetDynamics' solution will play a key role in enabling businesses to leverage network computing to gain competitive advantage with their customers, suppliers and distributors."

NetDynamics' application server currently supports the Java platform and will enhance and extend Sun's capabilities to benefit enterprise developers, independent software vendors, corporate end users and IT managers.

The acquisition will be in the form of a stock for stock merger. The closing of this acquisition will be subject to regulatory approvals, NetDynamics' shareholder approval, and certain customary conditions to closing. Catalyst for Enterprise JavaBeans Component Architecture

Sun worked closely with industry leaders to define the specification for the Enterprise JavaBeans component architecture. The Enterprise JavaBeans application programming interface (API) uses Java technology to break through the complexity of building end-to-end business solutions. With the Enterprise JavaBeans API, developers can design and re-use small program elements to build powerful corporate applications.

"The combination of application server software and Enterprise JavaBeans components will be a powerful tool for corporations wanting to tap into preexisting systems and expedite deployment of new applications over the web,"said Alan Baratz, president, Sun's Java Software. "Sun's goal is to provide the highest quality implementation of the Enterprise JavaBeans API along with our application server offering. We fully expect healthy competition in this market; more competition leads to innovation, which in turn leads to greater customer choice."

Sun will continue to ship and support NetDynamics' current product line. In the future, Sun expects to include NetDynamics' technology in next generation software products for the enterprise.

NetDynamics, Inc. offers the first comprehensive Enterprise Network Application Platform, solving the problems organizations face in integrating disparate computing environments, scaling business-critical applications and managing distributed systems. The NetDynamics platform leverages a powerful, open and secure architecture to enable innovative business solutions. More than 650 customers including AT&T, Chevron, Fidelity Investments, NationsBank, and Service Merchandise, use NetDynamics, which also is supported by more than 100 leading systems integrators, VARs, and ISVs. Based in Menlo Park, Calif., the company was founded in 1995. FMI: http://www.sun.com.