Oracle to buy network equipment maker Acme Packet for $2 bn

Enterprise software giant Oracle Corp today agreed to buy network equipment maker Acme Packet Inc, for about $2 billion in order to accelerate voice, video and data delivery across networks.

Oracle  has offered to pay $29.25 per share, a 22-per cent premium to Acme Packet's Friday closing price  on the Nasdaq. The company noted that net of cash, the acquisition price represents an enterprise value of $1.7 billion.

"Users are increasingly connected and expect to communicate anytime and anywhere using their application, device, and network of choice. Oracle Communications along with Acme Packet can help service providers and enterprises meet these demanding requirements," Oracle said in a statement.

Massachusetts-based Acme Packet, a competitor to networking giant Cisco Systems, makes networking equipment that delivers voice, video and data across Internet networks.

It designs and manufactures its products in the US, selling them through over 220 distribution partners worldwide.

More than 1,925 customers in 109 countries have deployed over 21,000 Acme Packet systems, including 89 of the top 100 service providers and 51 of the Fortune 100.