Enterprise software maker Oracle has agreed to acquire Acme Packet, a maker of networking gear for voice, data and unified communications services, for approximately $1.9 billion in cash.
Oracle will buy Acme Packet for $29.25 per share—a 22 percent increase on Friday's $23.93 share price.
That's $2.1 billion in fully diluted equity value, while Acme said the deal gave it an enterprise value of $1.7 billion.
The deal is subject to the approval of Acme stockholders and closing conditions. Until the deal closes, the two companies will operate independently.
Oracle plans to make Acme Packet a "core offering" in its communications portfolio. Acme Packet's management team and employees are expected to join Oracle's Communications Global Business Unit once the deal closes.
The deal is expected to close in the first half of 2013.
Acme Packet provides next-generation solutions for applications, services and next-generation voice and data communications across networks.
In prepared remarks, Acme Packet chief executive Andy Ory said:
We are excited to join forces with Oracle because we believe that together we can rapidly accelerate the transformation to all-IP communications networks across the globe.
For Oracle, the acquisition will help the company to accelerate its offering of secure and reliable communications from any device and across any network. The move will boost Oracle's networking unit—particularly with Acme Packet's own Session Border Control technology—in order to speed the delivery and deployment of all-IP networks to service providers and enterprises.
Oracle president Mark Hurd added to Ory's prepared comments:
The proposed acquisition of Acme Packet is another important piece in Oracle’s overall strategy to deliver integrated best-in-class products that address critical customer requirements in key industries. The addition of Acme Packet to Oracle’s leading communications portfolio will enable service providers and enterprises to deliver innovative solutions that will change the way we interact, conduct commerce, deliver healthcare, secure our homes, and much more.
Shares in Oracle ($ORCL) fell by 1.4 percent in premarket trading after announcing its bid to buy the network gear maker. Acme Packet ($APKT) was up by close to 22 percent in pre-market trading.