Oracle continues telecoms push with Tekelec buy

Larry Ellison’s firm continues its move into the telecoms space with its latest acquisition

Oracle's latest acquisition in the telecoms space is that of Tekelec.

Tekelec is known for its Diameter network technology, used by more than 300 service providers in 100 countries to manage session border controls, policies and data for mobile networks.

The price paid has not been revealed, but, in January 2012, Tekelec was bought by a consortium of investors led by the Siris Capital Group for $780m, leaving questions over whether more or less was paid just a year later.  

The purchase also comes less than two months after Oracle announced its intention to buy Acme Packet in a deal worth $1.7bn.

If both acquisitions go through, Oracle plans on combining the two companies with its own communications division to launch “the most complete communications offering” for service providers, with customer engagement tools, network controls and new services.

As connected devices and applications become ubiquitous, intelligent network and service control technologies are required to enable service providers to efficiently deploy all-IP networks, and deliver and monetise innovative communication services,” said Bhaskar Gorti, senior vice-president and general manager of Oracle Communications.

“The combination of Oracle and Tekelec will provide service providers with the most complete solution to manage their businesses across customer engagement, business and network operations, service delivery and user applications.”

Dimitris Mavrakis, principal analyst for networks at Informa, said the move gave Oracle a very strong position to go after the service provider market.

“Oracle bought Acme Packet for its Session Border Controllers,” he said. “Tekelec also develops signalling technologies, policy control and subscriber data management, but is considered the market leader for signalling technology, especially Diameter for LTE.

“The move illustrates that Oracle has a serious appetite for the telecoms market and is now a force to be reckoned with.”

The management team and employees of Tekelec – totalling more than 1,000 – are expected to join Oracle Communications when the deal closes in the first half of 2013.

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