Oracle Adds Session Border Control Technology to Offerings with Acquisition of Acme Packet
Service and network equipment providers use Oracle (News - Alert) to optimize business processes, networks, IT systems and supply chains, rapidly launch innovative services and business models and build world-class customer experiences and thriving brands. Oracle solutions for communications address complex business processes to help companies speed time-to-market, reduce costs and gain a competitive edge. One thing it was missing, however, was session border control technology, a device or application that governs the way calls are initiated, conducted and terminated in a VoIP network. Until now.
Oracle announced this morning it is acquiring Acme Packet (News - Alert), a provider of session delivery network solutions that deliver next-generation voice, video, data and unified communications services and applications across IP networks, for $29.25 per share in cash, representing a fully diluted equity value of $2.1 billion. Net cash of this represents an enterprise value of $1.7 billion. The addition of session border control technology will help to speed the deployment of all-IP networks.
In a statement on the company’s website, Andy Ory, CEO of Acme Packet, said, “Today is a significant milestone for Acme Packet. We are excited to join forces with Oracle because we believe that together we can rapidly accelerate the transformation to all-IP communications networks across the globe. The combination of our session border control and other solutions with Oracle's powerful Communications portfolio will enable service providers to uniquely differentiate and monetize next-generation services, and help enterprises benefit from more effective user engagement and improved employee productivity. This combination will also provide our partners with an expanded portfolio of world-class solutions to help them create even greater value for their customers.”
Oracle plans to make Acme Packet a core offering in its Oracle Communications portfolio to enable customers to more rapidly innovate while simplifying their IT and network infrastructures. Acme Packet's management team and employees are expected to join Oracle’s Communications Global Business Unit, and continue their focus on building the industry’s best session delivery solutions.
Service providers are expected to be able to differentiate and monetize offerings through secure and reliable IP-based communications from any device, across any network. Enterprises will benefit from more effective user engagement and improved employee productivity, while partners can benefit from an expanded portfolio of solutions to accelerate the transformation to all-IP networks.
Image via Oracle
“The proposed acquisition of Acme Packet is another important piece in Oracle’s overall strategy to deliver integrated best-in-class products that address critical customer requirements in key industries,” said Oracle President Mark Hurd (News - Alert). “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 healthcare, secure our homes, and much more.”
This acquisition puts Oracle into closer competition with Acme Packet's SBC market rivals, including Cisco, Huawei (News - Alert) and Sonus Networks. Acme Packet employs 880 domain experts in IP networking, provides products to more than 1,900 enterprise and service provider customers globally, including 89 of the world’s top 100 communications companies, has a wide range of OEM and strategic alliance partners and has more than 330 reseller partners.
Acme Packet’s E-SBCs are designed to protect and control real-time voice, video and unified communications as they traverse IP network borders. Key applications within the E-SBCs include SIP trunking, consolidated IP telephony and UC networks, IP-enabled contact centers, hosted IP communications services and remote workers and offices.
“The communications industry is undergoing a dramatic shift as users become more connected and dependent on mobile applications and devices. Service providers and enterprises need a comprehensive communications solution that will enable them to more effectively engage with their customers,” said Bhaskar Gorti, senior vice president and general manager, Oracle Communications. “This combination will enable secure and reliable delivery of real-time interactive communications through the most comprehensive, best-in-class communications portfolio in the industry.”
Edited by Allison Boccamazzo