Sun Acquires Server Technology Startup

Sun Microsystems Inc. on Tuesday announced that it would acquire server-technology firm Kealia, Inc. The start-up firm specializes in server designs utilizing Advanced Micro Devices Inc.’s Opteron processor.

Kealia was co-founded and led by Andy Bechtolsheim, a co-founder of Sun Microsystems who served as the company’s vice president of technology from 1984 to 1995, where he held a range of roles including chief architect of Sun’s workstation product line.

Sun will acquire the privately-held, Palo Alto, Calif.-based startup in a stock-for-stock merger. Once the deal is completed, Kealia will become the Advanced Systems Technology group within Sun’s Volume Systems Products organization, headed by Executive Vice President Neil Knox.

Bechtolsheim will return to Sun as senior vice president and chief architect within the Volume Systems Products group, reporting to Knox, and will also be a member of Sun’s Executive Management Group, led by CEO, chairman and president Scot McNealy.

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