Oracle has entered into an agreement to acquire Acme Packet, a session delivery network solutions company, for $29.25 per share in cash in a deal worth $2.1 billion.
Oracle President Mark Hurd had this to say about the deal: "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."
Acme Packet CEO Andy Ory said, "Acme Packet brings deep domain expertise and proven, mission-critical solutions to enable all- IP networks. 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 superior experience across services, devices and networks."
"The communications industry is undergoing a dramatic shift as users become more connected and dependent on mobile applications and devices. Service providers and enterprises need a comprehensive communications solution that will enable them to more effectively engage with their customers," said Bhaskar Gorti, SVP and GM, Oracle Communications. "This combination will enable secure and reliable delivery of real-time interactive communications through the most comprehensive, best-in-class communications portfolio in the industry."
The deal is expected to close in the first half of the year, subject to Acme Packet shareholder approval. The company's board has unanimously approved it.
Here's a letter Ory sent to Acme Packet's 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