Sun has agree to acquire MySQL, an open source icon and developer of one of the world’s fastest growing open source databases for approximately $1 billion.

MySQL’s open source database is the “M” in LAMP – the software platform comprised of Linux, Apache, MySQL and PHP/Perl often viewed as the foundation of the Internet. Sun is committed to enhancing and optimizing the LAMP stack on GNU/Linux and Microsoft Windows along with OpenSolaris and MAC OS X. The acquisition accelerates Sun’s position in enterprise IT to now include the $15 billion database market.

With millions of global deployments including Facebook, Google, Nokia, Baidu and China Mobile, MySQL will bring synergies to Sun that will change the landscape of the software industry by driving new adoption of MySQL’s open source database in more traditional applications and enterprises. The integration with Sun will extend the commercial appeal of MySQL’s offerings and improve its value proposition with the addition of Sun’s global services organization. MySQL will also gain new distribution through Sun’s channels including its OEM relationships with Intel, IBM and Dell.

“Today’s acquisition reaffirms Sun’s position at the center of the global Web economy. Supporting our overall growth plan, acquiring MySQL amplifies our investments in the technologies demanded by those driving extreme growth and efficiency, from Internet media titans to the world’s largest traditional enterprises,” said Jonathan Schwartz, CEO and president, Sun Microsystems.

MySQL’s open source database is widely deployed across all major operating systems, hardware vendors, geographies, industries and application types. The complementary product line-ups will extend MySQL’s database reach and are expected to bring new markets for Sun’s systems, virtualization, middleware and storage platforms.

More than 100 million copies of MySQL’s high-performance open source database software have been downloaded and distributed and an additional 50,000 copies are downloaded daily. This broad penetration coupled with MySQL’s strength in Web 2.0, Software as a Service (SaaS), enterprise, telecom and the OEM embedded market make it an important fit for Sun. MySQL will be integrated into Sun’s Software, Sales and Service organizations and the company’s CEO, Marten Mickos, will be joining Sun’s senior executive leadership team.

As part of the transaction, Sun will pay approximately $800 million in cash in exchange for all MySQL stock and assume approximately $200 million in options. The transaction is expected to close in late Q3 or early Q4 of Sun’s fiscal 2008.