Oracle takes over Acme Packet in £1b deal

Oracle has said it will take over communications hardware company Acme Packet in a $1.7 billion (£1 billion) deal, as it expands from software into network equipment.

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."

404

Sorry! Page not found.

The article you requested has either been moved or removed from the site.