Sun To Buy E-Learning Software VendorSun To Buy E-Learning Software Vendor

In a move that signifies its growing role in the E-learning market, Sun Microsystems said Tuesday that it has agreed to buy privately held E-learning software developer Isopia Inc. in a cash and stock transaction. Sun declined to divulge the purchase price.

With the acquisition, Sun would gain access to Isopia's integrated learning-management system, a Java-based software package that manages and delivers online learning via the Web. Isopia's technology should help Sun more effectively tap corporate spending for online training, expected to exceed $23 billion by 2004, according to International Data Corp. "This is great for Sun's overall strategy to increase Web usage and expand into E-learning services options," says Brandon Hall, a researcher at Brandon-hall.com. "The acquisition now puts them in comparable position with IBM Mindspan Systems."

Isopia will be integrated into Sun Educational Services, Sun's online training division, and will be overseen by VP and general manager Bill Richardson. Sun plans to retain all of Isopia's 200-plus employees. The acquisition, which is subject to shareholder and regulatory approval, is expected to be completed by the end of July.