Oracle makes UC buy with Acme Packet

Silicon Valley giant Oracle expands into the IP networking business with the $1.7bn acquisition of Acme Packet

Oracle today announced it had bought Acme Packet in a deal worth $1.7bn.

Larry Ellison’s firm Oracle may be better known for its software, but it has been expanding its way into datacentre hardware market for some years following its acquisition of Sun Microsystems and building up its communications business. With this latest buy, it adds another string to its bow with IP networking tools.

Acme Packet is best known for its session border controllers. The series of hardware, with its accompanying Net-Net operating system (OS), enables voice, video and other unified communications tools to be delivered over IP networks.

It has a particularly big market share in service provider and enterprise markets, claiming to serve 89 of the world’s top 100 communications providers. Notable customers include Telefonica and China Telecom.

“The proposed acquisition of Acme Packet is another important piece in Oracle’s overall strategy to deliver integrated best-in-class products that address critical customer requirements in key industries,” said Oracle president Mark Hurd.

“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.”

Oracle hopes the deal will see a change in the marketplace, with more people moving to fully IP networks for their communications as people continue to work on the move and bring their own device to the office.

“Acme Packet brings deep domain expertise and proven, mission-critical solutions to enable all-IP networks,” added Andy Ory, CEO of Acme Packet.

“Together with Oracle, we expect to provide customers with purpose-built, innovative solutions to accelerate the deployment of all-IP networks and help deliver a consistent experience across all services, devices and networks.”

The acquisition is expected to close in the first half of 2013, but has already won unanimous approval of Acme Packet’s board of directors.


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