FILE-This Tuesday, Aug. 21, 2012, file photo, shows an exterior view of Hewlett Packard Co.'s headquarters in Palo Alto, Calif. The PC business is faltering amid shifting technology trends since Apple Inc. shifted the direction of computing with the release of the iPhone in June 2007. HP's market value has plunged by 60 percent to $35 billion, while Dell's market value has also plummeted by 60 percent, to about $20 billion. (AP Photo/Paul Sakuma,File)
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FILE-This Tuesday, Aug. 21, 2012, file photo, shows an exterior view of Hewlett Packard Co.'s headquarters in Palo Alto, Calif. The PC business is faltering amid shifting technology trends since Apple Inc. shifted the direction of computing with the release of the iPhone in June 2007. HP's market value has plunged by 60 percent to $35 billion, while Dell's market value has also plummeted by 60 percent, to about $20 billion. (AP Photo/Paul Sakuma,File)
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FILE-In this undated file photo, a man tries out the enhanced version of International Business Machines Corp's Personal Computer which was unveiled in New York, March 8, 1983. The PC business is faltering amid shifting technology trends since Apple Inc. shifted the direction of computing with the release of the iPhone in June 2007. HP's market value has plunged by 60 percent to $35 billion, while Dell's market value has also plummeted by 60 percent, to about $20 billion. (AP Photo/File)
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FILE - In this Oct. 19, 2009 file photo, the Apple logo is seen on an Apple store in San Francisco. AP Apple shares plunged Thursday, Jan. 24, 2013, after the company reported quarterly results that point to growth slowing after five blowout years. (AP Photo/Russel A. Daniels, File)
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The iPad Mini is shown in San Jose, Calif., Tuesday, Oct. 23, 2012. The device has a screen that's about two-thirds the size of the full-size model, and Apple says it will cost $329 and up. (AP Photo/Marcio Jose Sanchez)
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The back of an iPhone 4 and IPad 3 are displayed for a photographer in New York, Thursday, Dec. 6, 2012. Apple CEO Tim Cook said Thursday the company will produce one of its existing lines of Mac computers in the United States next year. Like most consumer electronics companies, Apple forges agreements with contract manufacturers to assemble its products overseas. (AP Photo/Karly Domb Sadof)
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FILE - In this Tuesday, Oct. 4, 2011, file photo, Apple CEO Tim Cook speaks in front of a projection of the Macbook Air and Mac Desktop during announcement at Apple headquarters in Cupertino, Calif. Apple CEO Tim Cook said Thursday the company will produce one of its existing lines of Mac computers in the United States next year. Like most consumer electronics companies, Apple forges agreements with contract manufacturers to assemble its products overseas. (AP Photo/Paul Sakuma, File)
Oracle to buy Acme Packet for about $2.1B
REDWOOD SHORES, Calif. (AP) — Oracle will
Acme Packet Inc., which makes equipment for telecommunications companies, for about $2.1 billion.
Acme's gear is used by more than 1,900 service providers and enterprises around the world. Its technology will complement Oracle's offerings for telecoms providers, said Citigroup analyst Walter Pritchard.
Oracle, a database software maker based in Redwood City, Calif., will pay $29.25 per share for Acme. That represents a 22 percent premium over the Bedford, Mass., company's Friday closing stock price. The companies valued the deal at $1.7 billion, net of Acme's cash.
Shares of Acme soared 22 percent, or $5.35, to $29.28 in morning trading. Shares of Oracle Corp. lost 62 cents, or 1.7 percent to $35.58.
Acme's board unanimously approved the acquisition, which is expected to close in the first half of 2013. The deal remains subject to Acme shareholder and regulatory approval.
Brian White at Topeka Capital Markets said that the deal might herald more acquisitions of communications gear makers by companies like IBM Corp., Hewlett-Packard Co. and Dell Inc. Targets could include Juniper Networks Inc. and F5 Networks Inc., he said. Shares of those companies were up just over 1 percent on a down day for the overall market.
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