Oracle to Buy Acme Packet for $1.7 Billion
Feb 4th 2013 12:10PM
Updated Feb 4th 2013 1:20PM
Oracle has agreed to buy Acme Packet in a $1.7 billion deal, net of Acme's $363 million in debt-free cash. The offer is $29.25 per Acme Packet share.
The purchase will give Oracle access to proven solutions for transporting multimedia information across standard IP-based networks. Oracle President Mark Hurd explained in a press release that Acme will help his company "deliver innovative solutions that will change the way we interact, conduct commerce, deliver health care, secure our homes, and much more."
Acme's board of directors has approved the buyout, which is expected to close in the first half of 2013. Shareholders still have to approve the bid, alongside the customary assortment of regulatory reviews.
Acme Packet's shares opened at $29.36 following this announcement -- slightly above Oracle's $29.25 offer price and 23% above Friday's closing price.
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