New York, NY, United States (4E) – Oracle Corp. has agreed to pay $1.98bn in cash to acquire Acme Packet Inc., giving the second-biggest maker of business applications the technology to make Internet protocol (IP) networks securely deliver information.
Acme’s shareholders will receive a cash amount of $29.25 per share, a 22 percent premium over Friday’s closing price. The company’s shares have tumbled 29 per cent over the past year but have rebounded recently, jumping 37 percent in the last three months. Oracle’s acquisition offer represents an enterprise value of $1.7bn net of cash, according to Acme.
The Bedford, Mass.-based Acme provides delivery of video, voice and data over IP networks, with currently more than 1,925 clients in 109 countries. The deal will extend Oracle’s buying expedition that started in 2005, pushing the company further into networking technology, a segment that has significantly gained from the boom in mobile platforms.
In a statement, Oracle Communications senior vice president and general manager Bhaskar Gorti said that the communications industry is undergoing dramatic changes with users becoming more linked and dependent on mobile devices and applications.
The deal is expected to be completed in the first half of 2013.
In December, Oracle paid $810mn to acquire software company Eloqua Inc., an acquisition aimed to boost its cloud-based and market-analysis business.