Oracle deal lifts stocks of networking gear firms
SAN FRANCISCO (AP) — Investors flocked to the stocks of several technology companies specializing in networking gear after business software maker Oracle Corp. drew more attention to the sector by announcing a $2.1 billion acquisition of Acme Packet Inc.
The deal announced Monday spurred speculation about whether Oracle and some of its major rivals will snap up other networking gear companies to round out their product lines.
Many Acme Packet shareholders are likely to reap substantial gains from Oracle. The sale price works out to $29.25 per share — 22 percent above where the stock stood before Oracle announced the acquisition. Oracle, which is based in Redwood Shores, Calif., is getting Acme at a steep discount from the stock's record high of $64.50 reached less than two years ago.
Acme's stock rose $5.24 to $29.17 in afternoon trading.
Investors are now hoping for windfalls from other networking gear specialists that could be appealing takeover targets.
The list of potential prey includes: Sonus Networks Inc., whose stock gained 35 cents, or 15 percent, to $2.63 in afternoon trading; BroadSoft Inc., whose stock surged $2.68, or 7.7 percent, to $37.66; Procera Networks Inc., whose stick climbed 78 cents, or 4.6 percent, to $17.71; and Allot Communications Ltd., whose stock added 43 cents, or 3.1 percent, to $14.28.