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Oracle Agrees to Buy Acme Packet for $1.98 Billion in Cash
Oracle Corp. (ORCL) has agreed to buy Acme Packet Inc. (APKT) for about $1.98 billion in cash, a deal the technology heavyweight said will accelerate the deployment of all-IP networks.
Oracle will pay Acme's shareholders a per-share cash price of $29.25, a premium of 22% over Friday's close. The shares are off 29% over the past 12 months but have marked a rebound of late, climbing 37% in the past three months. The company noted that net of cash, the acquisition price represents an enterprise value of $1.7 billion.
Based in Bedford, Mass., Acme Packet makes networking equipment that allows customers to deliver voice, video and data across Internet networks for tasks such as video conferencing. It competes against heavyweights such as Cisco Systems Inc. (CSCO) and derives a significant percentage of its revenue from mobile-phone-service providers. Weak North American demand hurt the company's results for much of last year.
The companies noted the deal will "accelerate the migration to all-IP networks by enabling secure and reliable communications from any device, across any network." They characterized the acquisition as allowing Oracle to help service providers and enterprises enable users to communicate anytime and anywhere using their application, device, and network of choice.
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