logo
  Join        Login             Stock Quote

Oracle (ORCL) Taps Acme Packet (APKT) For $2.1 Bln

 February 04, 2013 09:05 AM
 


(By Mani) Business software maker Oracle Corp. (NASDAQ: ORCL) would buy Acme Packet, Inc. (NASDAQ: APKT) for $2.1 billion to boost its communications portfolio and services. On the news, shares of Acme Packet surged more than 20 percent in the pre-market trading, while Oracle fell 1 percent.

For each share of Acme Packet, California-based Oracle would pay $29.25 representing a 22 percent premium to Acme Packet's closing price on Friday at the Nasdaq. Excluding cash, the consideration represents an enterprise value of $1.7 billion.

Bedford, Massachusetts-based Acme Packet helps delivery of next-generation voice, video, data and unified communications services and applications across IP networks through its networking gears. The deal would give Oracle Acme's session border control technology to Oracle's communications table offering to speed the deployment of all-IP networks.

Acme Packet's session delivery network solutions are used by over 1,850 customers in more than 100 countries. The company's customers include fixed line, cable, mobile, transit and over-the-top (OTT) communication service providers, as well as enterprises, contact centers and government organizations. Acme's clientele includes AT&T, Inc. (NYSE:T) Verizon Communications, Inc. (NYSE:VZ) Microsoft Corp.'s (NASDAQ:MSFT) Skype.

Service providers, enterprises and contact centers continue to build IP-based infrastructure to lower their operating costs and introduce new IP-enabled offerings such as VoIP, video-over-IP and instant messaging (IM).

More-and-more service providers and enterprises are turning to session delivery networks, which layer complementary intelligence and controls over an IP transport network. The session delivery networks would also help them overcome the limitations inherent in using the Internet, unsecured IP network for session-based voice, video, data and unified communications,

Acme Packet's session delivery network solutions enable delivery of next-generation voice, data and unified communications (UC) services and applications across IP networks that bridge the gap between the underlying IP transport network and applications and services.

With the IP transport network providing basic packet routing and delivery services, the overlay session delivery network provides critical session border control and session management functions that ensure prioritized, secure and trusted delivery of a broad range of services and applications.

The combination of Oracle and Acme Packet is expected to accelerate the migration to all-IP networks by enabling secure and reliable communications from any device, across any network.

The deal could help service providers and enterprises delivering an end-to-end portfolio of technologies that will support the deployment, innovation and monetization of all-IP networks.

The Board of Acme Packet has unanimously approved the transaction, which is expected to close in the first half of 2013, subject to stockholder approval, certain regulatory approvals and other customary closing conditions.

Separately, Acme Packet reported a fourth-quarter net loss of $2.03 million, or 3 cents a share, compared to a profit of $8.72 million, or 12 cents a share, in the fourth quarter of 2011. Excluding items, it earned $6.5 million, or 9 cents a share, compared to $18.3 million, or 26 cents a share, last year. Wall Street expected earnings of 8 cents a share, according to analysts polled by Thomson Reuters.

Total revenue for the fourth quarter of 2012 was $70.7 million, lower than $83.0 million in the fourth quarter of 2011. Analysts expected revenue of $68.86 million.

As of Dec.31, Acme Packet has cash and cash equivalents of $55.38 million and short-term investments of $302.87 million.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.