Acme makes hardware that is used in the transmission of voice and video data over the Internet, making it a competitor for firms like Cisco and Juniper Networks. Though Oracle has a miniscule presence in the communications infrastructure market, the Redwood Shores, California-based company bought Sun Microsystems in 2010 in a deal worth $7.4 billion (£4.7 billion).
“We have been expecting Oracle to make a bigger push into the networking market,” said Topeka Capital Markets analyst Brian White.
“Convergence across the IT world appears to be inevitable,” he added.
Acme has faced a drop in orders over the past year, leading it to report a fourth-quarter deficit of $2 million (£1.3 million). Its shares saw a 22 per cent boost after the announcement of the acquisition, while Oracle’s shares declined by 2.3 per cent.
The two firms said the deal will “accelerate the migration to all-IP networks by enabling secure and reliable communications from any device, across any network.”Leave a comment on this article