Oracle has announced a deal to acquire networking firm Acme Packets in a $1.7bn stock buyout deal.
The company said that it would pay some $29.25 per share to acquire the company. Oracle said that it expects the deal to close by mid-2013.
Based out of Massachusetts, Acme Packet specialises in network management platforms to optimise speeds for unified communications and data traffic.
"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 Mark Hurd, Oracle president.
"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."
Oracle said that following the close of the deal it would be integrating Acme Packets into its Oracle Communications networking platform. The company hopes that the deal will allow it to offer an end-to-end networking brand for enterprise customers.
According to analysts, Acme Packet stands to gain from the deal at least as much as Oracle. Ovum analyst Dana Cooperson said that the firm will benefit from being part of a larger communications offering.
"Companies that specialise in either telecom or IT will need a strategy of how they will benefit from this blending of what were two largely separate domains," Cooperson said.
"Any vendor that wants to be a full-service partner to the telcos and other large communications and content providers will need such a blended strategy to be credible. Specialists will need to align with full-service partners."