Oracle Swoops In on Acme Packet

February 4th, 2013 by · Leave a Comment

Session border specialist Acme Packet (NASDAQ:APKT, news, filings) found itself a strategic buyer, and not a minor one either. The database giant Oracle has agreed to purchase the company for $2.1B in cash, or $29.27 per share. That’s a 22% premium to the closing price on Friday, and works out to a purchase price of $1.7B net of the cash on Acme Packet’s balance sheet.

The last couple years have been a bit frustrating for Acme Packet (NASDAQ:APKT, news, filings), as following a stock price peak above 80 in the Spring of 2011 it has been downhill most of the way since.  With a tough go of it alone, seeking a strategic alternative like this certainly seemed likely.

Finding a home within Oracle makes some sense within the context of the spreading of cloud-related technologies. These have brought Oracle’s various technologies closer to the network itself, and therefore the company is beefing up its all-IP network technology base.

But I hadn’t expected that trend to bring Oracle this much further into the telecommunications vendor side of things. I wonder if they have further inorganic plans of this type in mind.

The deal has already been approved by the Acme Packet board, and Oracle expects to close the deal sometime in the first half.

Categories: Mergers and Acquisitions · Telecom Equipment

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