Oracle Makes $1.7 Billion Play for Acme

Oracle started the week off on a high note with an agreement to acquire Acme Packet in a deal valued at $2.1 billion. Adjusted for Acme’s cash, short-term investments, and other assets, Oracle will be paying out $1.7 billion for the session border specialist. The per share price of the deal is $29.25, a 22% premium over Acme’s Friday closing price of $23.93.

Acme is a leading player in the session border controller (SBC) market, with its products deployed by 1,900 customers and 89 of the world’s top 100 operators. Its products manage IP traffic at the borders of networks (such as where carriers’ networks meet or where carrier networks connect to enterprise networks) and enable delivery of voice and data services over IP networks.

The acquisition of Acme will boost Oracle’s relationship with telecom providers, while also expanding its portfolio of unified communications products. As enterprises increasingly move to SIP trunking to replace traditional fixed PSTN lines, Oracle aims to provide its customers with products and technology to support the transition to an all-IP network. The deal has already been approved by Acme’s board of directors and is expected to close in the first half of 2013, subject to shareholder approval and regulatory clearance.

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