Sun will buy Tarantella for $25 million in cash.
Tarantella has developed its Secure Global Desktop software to give access to enterprise applications over the Web. It sells the product online, through its own sales force and a network of resellers.
Sun's purchase will bolster its SunRay thin client products, said VP of Sun's Network Systems group John Fowler. "We'll soon be able to deliver a desktop display service that delivers seamless inter-operability to Windows, Linux and mainframe applications," he said.
Sun also plans to integrate Tarantella's software into its Solaris operating system, anddevelop Tarantella products for the teleco and mobile markets.
Directors and executives at Tarantella, holding 4.7 percent of Tarantella stock, have already accepted the deal, and the company has agreed not to solicit other bids.
Sun will pay Tarantella up to $2 million in six stages while the deal is closing, in return for licences and engineering support. Tarantella lost just under $1.3 million during the last quarter of 2004.