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Oracle to pay $1.7B for network service provider Acme Packet

The deal is expected to benefit Oracle as its business customers move to all-IP networks.

Oracle said today that it has agreed to buy Acme Packet for $1.7 billion.

Acme Packet sells voice and data products and services used across IP networks. Its customers range from telecommunications providers to large enterprises and include 90 of the world's top 100 communications firms, according to Oracle.

The addition of Acme is expected to help Oracle customers ramp up the move to all-IP networks. Together with Acme, Oracle will be able to offer a range of products and technologies that can support large companies as they deploy their IP networks.

All-IP networks are increasingly being rolled out by businesses to handle voice traffic along with data.

"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 President Mark Hurd said in a statement.

The acquisition is seen as a win for Oracle by Jefferies analyst Ross MacMillan. In an investors note out today, MacMillan said he expects the deal to increase demand for Oracle's Sun hardware. Adding Acme will also expand Oracle's portfolio of unified communications products as well as its relationship with large telecom providers.

Already approved by Acme's board of directors, the deal is expected to close during the first half of 2013, subject to shareholder approval, regulatory approval, and other factors.