Oracle Buys Acme Packet for $2.1 Billion to Provide Converged Systems Solution
Oracle has agreed to acquire Acme Packet, a provider of Session Border Control technology, for $2.1 billion. Acme Packet allows service providers to deliver voice, data and unified communications services and applications across IP networks. More than 1,900 service providers and enterprises, including 89 of the world’s top 100 communications companies, are Acme Packet customers. The transaction is expected to close in the first half of this year.
Oracle President Mark Hurd called the proposed acquisition of Acme Packet another important piece in the company’s overall strategy to deliver integrated products that address critical customer requirements in key industries.
“The addition of Acme Packet to Oracle’s leading 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,” Hurd said.
By integrating Acme Packet technology, Oracle expects to accelerate the migration to all-IP networks by making it possible for service providers to offer secure, reliable communications from any device, across any network. With more high speed communications interfaces, companies are moving to deliver hardware stacks that consist of servers, storage and networking from a single vendor.
“The communications industry is undergoing a dramatic shift as users become more connected and dependent on mobile applications and devices,” said Bhaskar Gorti, senior vice president and general manager of Oracle Communications. “Service providers and enterprises need a comprehensive communications solution that will enable them to more effectively engage with their customers.”
Charles King, principal analyst at Pund-IT, said there were three issues to explore: how Acme Packet’s solutions stack up against Oracle’s competition; how the acquisition will affect Oracle’s longstanding relationships with Cisco and Juniper; and how customers will ultimately respond.
“In the past, we’ve seen some resistance, specifically among enterprises that have a fairly large investment in Cisco hardware. They want to stick with the hardware that they know and understand,” King said. “Adding yet one more network player to the mix may have questionable value for some of those customers.”
From Acme Packet CEO to Acme Packet Customers and Partners
On February 4, 2013, we announced that we have signed an agreement to be acquired by Oracle. The proposed transaction is subject to stockholder approval, certain regulatory approvals, and customary closing conditions and is expected to close in the first half of 2013. Until the deal closes, each company will continue to operate independently, and will operate its business as usual.
Today is a significant milestone for Acme Packet. We are excited to join forces with Oracle because we believe that together we can rapidly accelerate the transformation to all-IP communications networks across the globe. The combination of our session border control and other solutions with Oracle’s powerful Communications portfolio will enable service providers to uniquely differentiate and monetize next-generation services, and help enterprises benefit from more effective user engagement and improved employee productivity. This combination will also provide our partners with an expanded portfolio of world-class solutions to help them create even greater value for their customers.
Oracle plans to make Acme Packet a core offering in its Oracle Communications portfolio to enable customers to more rapidly innovate while simplifying their IT and network infrastructures. This means our customers can expect to continue to receive the expertise, vision and passion that they have come to expect from us today — and our efforts will be supported by the global reach, investment and infrastructure of Oracle.
Acme Packet’s management team and employees are expected to join Oracle’s Communications Global Business Unit, and continue their focus on building the industry’s best session delivery solutions. We expect that joining Oracle will provide significant benefits for both our customer and partner communities.
Thank you for your continued support and for being part of the Acme Packet community.
CEO, Acme Packet