Cobalt Networks agrees to $2bn Sun buyout

Sun Microsystems has bought server appliance provider Cobalt Networks in an all-stock deal worth around $2bn.

The deal increases Sun's presence in the server appliance market and reinforces its commitment to network computing. Under the terms of the deal, each Cobalt share will be worth 0.5 of a Sun share. The deal is expected to be finalised by the end the year. More to follow...