REDWOOD SHORES, Calif. (AP) -- Oracle is acquiring the network gear company Acme Packet for about $2.1 billion.
The software giant will be able to bolster the communications package it offers to customers with the acquisition, it said Monday. Acme makes phone and data network equipment that's used by more than 1,900 service providers and enterprises around the world.
Oracle, 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 Packet Inc. soared 23 percent, or $5.57, to $29.50 in premarket trading. Oracle Corp. shares lost 44 cents to $35.77.
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.