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UPDATE: Citigroup Reiterates Buy on Oracle Corporation Following Acquisition

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Citigroup reiterated Oracle Corporation (NASDAQ: ORCL) at Buy with a $38 price target following the Acme Packet (NASDAQ: APKT) acquisition.

Citigroup commented, "Oracle agreed to acquire publicly traded networking company Acme Packet for $1.7B net of Acme's cash, a 22% premium. Acme's session border control technology helps telecom carriers move to all-IP service delivery and will form the core of Oracle's service delivery platform (SDP). … Oracle is paying 6x LTM revenue, well within the typical range for Oracle. Although this is Oracle's largest ever vertical acquisition (next largest was i-flex for banking vertical @ $1.5B), we do not expect any material financial impact. Acme was profitable, so the dilution should be minimal."

Oracle Corporation closed at $35.89 on Friday.

Latest Ratings for ORCL

DateFirmActionFromTo
Jan 2016BMO CapitalInitiates Coverage onMarket Perform
Jan 2016Evercore ISI GroupUpgradesHoldBuy
Nov 2015Goldman SachsUpgradesBuyConviction Buy

View More Analyst Ratings for ORCL
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Reiteration Analyst Ratings

 

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