In an effort to resurrect its languishing business, computer hardware and software maker Sun Microsystems announced yesterday a $4.1 billion acquisition of Storage Technology.

While StorageTek, which makes tape drives and network management and backup software, operates in what analysts say is a slow-growth market, some on Wall Street see the deal as a good first step for the company.

“There’s more for them to do,” said Mark Stahlman, an analyst at Caris & Company. “What they actually bought, I believe, greatly expands their set of customers.”

Sun has struggled to turn around its business following the Internet and technology meltdown. The company has been making a concerted effort to expand its client base from primarily the telecommunications industry and the government, which have slowed their spending on tech gear. Speculation has abounded that Sun would make an acquisition, given its large cash position of about $7.5 billion before the deal, or that it would be the target of a takeover. In order for Sun to grow, analysts have said the company needs to launch new products and expand its customer base.

Under terms of the deal, StorageTek shareholders will receive $37 for each of their shares for a total of $4.1 billion.

The deal, which is expected to close in late summer or early fall, has already been approved by the boards of both companies. The two had revenue of more than $13 billion in the past year.

Sun expects the acquisition to be dilutive to earnings in the first 12 months, as acquisition-related expenses will weigh on its earnings on a generally accepted accounting principles basis. Analysts said StorageTek has about $1 billion of cash on its balance sheet, which will put Sun’s cash position at around $4.5 billion. Some analysts said the price tag seems fair, given StorageTek’s cash and its sales force, even though it is a slow-growing company.

“The storage market is a big one, with lots of growth opportunities,” said Caris’s Mr. Stahlman. “It’s likely over time the asset will increase in value.”

Investors, however, sent shares of Sun down 11 cents to $3.79 yesterday.

Brent Bracelin, an analyst at Pacific Crest Securities, said while the market still is struggling to understand why Sun is buying a company that is growing 1% to 2% a year, it will fill holes in Sun’s storage business, as well as give it access to a sales force of more than 1,000 and a consulting group that counts more than 2,000 consultants. According to Mr. Bracelin, Sun’s storage sales force, before the acquisition, totaled around 100 to 200 employees.