Santa Clara-based Sun Microsystems and Oracle Corporation announced this morning that the two have entered into a definitive agreement, where Oracle will acquire Sun for approximately $7.4 billion in cash. According to the firms, Oracle will pay $9.50 per share in cash for Sun. The deal is worth approximately $5.6 billion, after adjusting for Sun's cash and debt. Oracle highlighted Sun's Java programming langugage and Solaris operating system as the key acquisitions in the deal. The deal to acquired Sun comes shortly after IBM abandoned an effort to acquire Sun.