Telecom Lead America: Oracle is set to buy Acme Packet.
The deal represents a fully diluted equity value of $2.1 billion. Net of cash this represents an enterprise value of $1.7 billion.
Oracle aims at enhancing its all-IP networks business.
Acme Packet is the first acquisition in 2013 for Oracle.
In 2012, Oracle acquired 11 companies.
READ Oracle’s main acquisitions in 2012 and 2011 HERE
Oracle plans to make Acme Packet a core offering in its Oracle Communications portfolio to enable customers to rapidly innovate while simplifying their IT and network infrastructures.
Acme Packet’s management team and employees are expected to join Oracle’s Communications Global Business Unit.
Service providers are expected to be able to differentiate and monetize offerings through secure and reliable IP-based communications from any device, across any network. Enterprise customers will be able to effectively engage customers, deliver more innovative applications, and improve employee productivity.
Oracle Communications and Acme Packet will deliver an end-to-end portfolio of technologies that will support the deployment, innovation and monetization of all-IP networks to telecom service providers and enterprises.
Letter of Andy Ory, CEO, Acme Packet, to its partners
“The addition of Acme Packet to Oracle’s communications portfolio will enable service providers and enterprises to deliver innovative solutions that will change the way we interact, conduct commerce, deliver healthcare, secure our homes, and much more,” said Oracle President Mark Hurd.
Based in Bedford, Massachusetts, Acme Packet designs and manufactures its products primarily in the USA, selling them through over 330 reseller partners worldwide.
Acme Packet’s revenue for the third quarter of 2012 was $65.3 million, compared to $70.6 million in the third quarter of 2011 and $67.6 million in the second quarter of 2012. Net loss for the third quarter of 2012 was $5.5 million compared to net income of $7.9 million in the third quarter of 2011.
More than 1,925 customers in 109 countries have deployed over 21,000 Acme Packet systems, including 89 of the top 100 service providers and 51 of the Fortune 100.
