February 4, 2013 – Oracle announced Monday it would pay $2.1 billion for Acme Packet in a proposal geared at securing enterprise device transmissions and data across networks.
Acme Packet delivers solutions for the voice, data and video transmission across IP networks. Oracle President Mark Hurd said in a statement that the deal is part of Oracle’s industry-specific strategy for enterprise communications offerings.
Dana Cooperson, principal analyst with U.K.-based consultancy Ovum, expects the “buying spree” in the communications space to continue, led by Oracle and rival Cisco. Cooperson stated that software and cloud offerings are the driving forces in the telecommunications industry, creating an overlap with enterprise software providers. Oracle’s proposed deal for Acme Packets should work toward unifying control over devices and subscriber communications.
“Companies that specialize in either telecom or IT will need a strategy of how they will benefit from this blending of what were two largely separate domains. 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,” said Cooperson.
The deal consists of $29.25 per share, and excluding Acme’s existing cash, results in Oracle doling out $1.7 billion. Acme’s board of directors has reportedly approved the deal, which is subject to closing conditions. It is Oracle’s first deal since November’s announced purchase of portfolio management provider Instantis.