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Oracle Snaps Up Tekelec

Ray Le Maistre
3/25/2013
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If anyone still harbored any doubts that Oracle Corp. was serious about the telecom sector then they can dispel them right now, as the software giant announced Monday that it's buying Tekelec for an undisclosed sum. (See Oracle Buys Tekelec.)

Oracle has been building its telecom technology arsenal for a number of years, focusing primarily on OSS and BSS (core Service Provider Information Technologyassets). But it signaled new intentions in January this year when it announced the impending acquisition of Acme Packet Inc., a move that will take it into the network infrastructure market and give it a prime seat on the network functions virtualization (NFV) bandwagon. (See Oracle to Acquire Acme for $1.7B and Is Acme a Virtual Gain for Oracle?)

Now it's buying Tekelec, which in the past has been known for its traditional SS7 signaling systems, but is now best known for its policy control, subscriber data management and Diameter routing (packet signaling management) platforms. Tekelec is also one of the companies at the forefront of NFV developments, having created a virtualized version of its Diameter Signaling Router and PCRF (Policy and Charging Rules Function) platforms.

Interestingly, both Acme and Tekelec have developed products for the management of Diameter traffic, which is (and will increasingly) play a critical role in the management of 3G and 4G mobile traffic.

But Heavy Reading Senior Analyst Jim Hodges doesn't see this as an issue. "While there is some overlap between Tekelec and Acme Packet in terms of Diameter products, Tekelec also brings to the table other unique data management and policy capabilities that will help Oracle expand market coverage. Like the Acme Packet acquisition, this wouldn't have made sense only a few years ago, but does today in this world of network virtualization and policy control enabled personalized services."

Tekelec is a private company, so there will be scant financial details about the proposed transaction. The company went private in January 2012 following a $780 million buy-out by a consortium of investors led by Siris Capital Group. (See Has Tekelec Been Undervalued?)

But only months after that transaction there was talk in the market that Tekelec was up for grabs. (See Tekelec Back in M&A Mode.)

— Ray Le Maistre, Editor-in-Chief, Light Reading

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alperburak
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alperburak,
User Rank: Light Beer
3/28/2013 | 10:44:07 AM
re: Oracle Snaps Up Tekelec
Not necessarily. Sonus can complement the Class 4 TDM interconnect core for the carrier-á&-áentry-álevel CPE for the enterprise.
hoytaxtontrio
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hoytaxtontrio,
User Rank: Light Beer
3/26/2013 | 5:37:50 PM
re: Oracle Snaps Up Tekelec
-áSonus would be overlap to Acme.-á Broadsoft makes more sense.
bibliotastic
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bibliotastic,
User Rank: Light Beer
3/26/2013 | 5:19:21 PM
re: Oracle Snaps Up Tekelec
@ KevinPetschow - your comment looks like spam to me and reflects badly on your employer.-á
KevinPetschow
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KevinPetschow,
User Rank: Light Beer
3/26/2013 | 4:25:46 PM
re: Oracle Snaps Up Tekelec


Cisco's steadfast execution to lead the next-gen mobility market transition is
just beginning to heat up.-áhttp://cs.co/minv

Ray Le Maistre
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Ray Le Maistre,
User Rank: Light Sabre
3/26/2013 | 10:51:55 AM
re: Oracle Snaps Up Tekelec
Shining our own crystal balls moment....
In May 2012 we cited Oracle as a potential buyer of Tekelec... (acknowledges ripple of applause...)

http://www.lightreading.com/po...
alperburak
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alperburak,
User Rank: Light Beer
3/26/2013 | 9:58:23 AM
re: Oracle Snaps Up Tekelec
Broadsoft-áand/or Sonus Networks I believe.
Gabriel Brown
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Gabriel Brown,
User Rank: Light Sabre
3/26/2013 | 9:00:37 AM
re: Oracle Snaps Up Tekelec
Looks like a textbook move by the PE investor that took Tekelec private and split it into a-ágrowth company with hot technology, but not so much revenue, and a mature business with good cash flow. Obviously that depends on the sale price.
grecanico
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grecanico,
User Rank: Light Beer
3/26/2013 | 7:13:38 AM
re: Oracle Snaps Up Tekelec
Bold move from Oracle. What is intriguing me is: they should decide which product from Tekelec and which from Acme will survive. Seeing their presentation it seems clear, Acme for SBC and Tekelec for Diameter. Now they entered in a brand new market for them: stronger and growing competition, lower margins with respect traditional sw licences, small volumes of revenue (today) to be seen as a sound contribution to the company results. I think they should lower their positioning in terms of prices and margins. The last consideration is that Oracle is now present in new operators departments, not only IT but the traditional telco engineering, they'll be able to give to these slow moving depts a spin to complete innovate Telcos? Simplified architectures, like the death of IMS and RCS as we know them, developments based on web tecnologies, incentive towards application integration instead of protocol based integration, etc. What do you think Ray?
Ray Le Maistre
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Ray Le Maistre,
User Rank: Light Sabre
3/25/2013 | 9:02:28 PM
re: Oracle Snaps Up Tekelec
Where does Oracle go next? It seems to be on an M&A rollercoaster....-á
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