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Monday, February 4, 2013

Oracle to Buy Acme Packet for $2.1 Billion

Oracle‘s deal machine has come to life once more, as the enterprise software giant agreed on Monday to buy Acme Packet for $2.1 billion to bolster its communications product offerings.

Under the terms of the deal, Oracle will pay $29.25 a share, 22 percent above Acme Packet’s closing price on Friday. Excluding cash, the target company is valued at about $1.7 billion.

The purchase is Oracle’s first deal of the year, and its biggest since the takeover of the Taleo Corporation last February for $1.9 billion.

Buying Acme Packet, which is based in Bedford, Mass., is intended to give Oracle tool that allow companies to send data securely across the Internet. Acme Packet’s Net-Net products allow customers to use data, voice and video applications across a variety of connections.

“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 health care, secure our homes and much more,” Mark V. Hurd, Oracle’s president, said in a statement.

Separately on Monday, Acme Packet said that it had swung to a $6.5 million loss for its fourth quarter, as revenue fell from both the previous quarter and the period a year earlier.

The deal is expected to close by June 30, pending approval from regulators and Acme Packet’s shareholders.

Oracle received legal counsel from Weil, Gotshal & Manges, while Acme Packet was advised by the law firm Bingham McCutchen.