UPDATE: Citigroup Reiterates Buy on Oracle Corporation Following 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
|Jun 2016||JP Morgan||Upgrades||Underweight||Neutral|
|Jun 2016||Cowen & Company||Initiates Coverage on||Outperform|
|Jun 2016||Deutsche Bank||Maintains||Hold|
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