Channel Register

Original URL: http://www.channelregister.co.uk/2007/06/20/sun_azul_stock/

Sun appears to own part of Java server start-up Azul

By Ashlee Vance in Las Vegas (ashlee.vance@theregister.co.uk)
Published Wednesday 20th June 2007 19:59 GMT

Did Sun Microsystems acquire a stake in Azul when the two companies settled their patent infringement dispute earlier this week? We're guessing yes.

A Reg search through Delaware's stockpile of corporate records shows that Azul Systems amended its articles of incorporation on June 18. The two page filing reveals that it has increased the number of authorized series E shares. Given the overlap between the regulatory filing and Sun and Azul's settlement date, it would seem that Sun has acquired shares in Azul as part of their deal.

Sun and Azul have confirmed an end to their patent disagreement, although neither side will reveal the terms of their settlement. Representatives from both companies told us yesterday that they were "very pleased" with the resolution.

Sun taking a stake in Azul would make a heck of a lot of sense.

The settlement clearly has not affected sales of Azul's Java server appliances – products based on the company's own multi-core Vega 2 chip. So, Sun must have gotten a little something out of the deal beyond the obvious, if you believe, as the company claims, that it had a very strong case against Azul.

Azul says that its enjoying healthy sales, and officials admit that the company considers itself an acquisition target. So, Sun now looks set to profit if HP, IBM or whomever forks over some cash for Azul.

Representatives from Sun and Azul have yet to respond to our request for comment about the stock amendment. ®

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