YOU ARE AT:WirelessOracle to buy Acme for $2.1B, bolsters communications product offerings

Oracle to buy Acme for $2.1B, bolsters communications product offerings

Roberta Prescott
By Roberta Prescott
Wireless

Oracle agreed to acquire Acme Packet, which makes network solutions to deliver voice, video, data and unified communications services and applications across IP networks. Under the agreement, Oracle will pay $29.25 per share in cash representing a fully diluted equity value of $2.1 billion. Net of cash this represents an enterprise value of $1.7 billion.

Dana Cooperson, principal analyst at Ovum, believes the acquisition should strengthen Oracle’s hand both with enterprises and carriers by giving it a more central role in controlling and improving how devices and subscribers interact and communicate.

Following the acquisition, Oracle expects to accelerate the migration to all-IP networks by enabling secure and reliable communications from any device, across any network. Combined, the companies aim to address service providers and enterprises’ needs.

In a statement, Oracle President Mark Hurd noted that the proposed acquisition of Acme Packet is “another important piece in Oracle’s overall strategy to deliver integrated best-in-class products that address critical customer requirements in key industries.”

The transaction is expected to close in the first half of this year, subject to Acme Packet stockholder approval, certain regulatory approvals and other customary closing conditions.

Ovum’s Cooperson explained that telecom and IT are coming together in ways that are shifting the vendor competitive framework significantly. “IT-focused companies like Oracle see a real opportunity to strengthen their position in both markets through extending their product lines and are acting aggressively,” Cooperson noted. “Any vendor that wants to be a full-service partner to the telcos and other large communications and content providers will need such a blended strategy to be credible.”

Check out Oracle’s latest acquisitions:

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ABOUT AUTHOR

Roberta Prescott
Roberta Prescott
Editor, [email protected] Roberta Prescott is responsible for Latin America reporting news and analysis, interviewing key stakeholders. Roberta has worked as an IT and telecommunication journalist since March 2005, when she started as a reporter with InformationWeek Brasil magazine and its website IT Web. In July 2006, Prescott was promoted to be the editor-in-chief, and, beyond the magazine and website, was in charge for all ICT products, such as IT events and CIO awards. In mid-2010, she was promoted to the position of executive editor, with responsibility for all the editorial products and content of IT Mídia. Prescott has worked as a journalist since 1998 and has three journalism prizes. In 2009, she won, along with InformationWeek Brasil team, the press prize 11th Prêmio Imprensa Embratel. In 2008, she won the 7th Unisys Journalism Prize and in 2006 was the editor-in-chief when InformationWeek Brasil won the 20th media award Prêmio Veículos de Comunicação. She graduated in Journalism by the Pontifícia Universidade Católica de Campinas, has done specialization in journalism at the Universidad de Navarra (Spain, 2003) and Master in Journalism at IICS – Universidad de Navarra (Brazil, 2010) and MBA – Executive Education at the Getulio Vargas Foundation.

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