Oracle will bolster its communications portfolio with the acquisition of Acme Packet, which makes networking gear for data, voice and unified communications services, in a deal reportedly worth some $1.9 billion cash.

The company announced that it will acquire Acme Packet for $29.25 a share, a significant 22% mark up on its Friday share price of $23.93. The deal amounts to some $2.1 billion in diluted equity value, giving Acme an enterprise value of $1.7 billion.

Acme Packet specializes in next-generation solutions for services, applications, voice and data communications across networks. According to Oracle’s press release, Acme shareholders still have to approve the deal, although this is expected to be a formality with the deal closing in the first half of this year. Until then, the two companies will continue to operate independently.

The deal looks to be an important one for Oracle, with the company announcing that it plans to make Acme Packet one of the core offerings in its communications portfolio. If the deal goes ahead, Acme Packet’s workforce will be combined with Oracle’s Communications Global Business Unit.

Mark Hurd, President of Oracle, said that the acquisition of Acme Packet was an important part of the company’s strategy to deliver specialized products that address the critical requirements of its customers in key industries.

“The addition of Acme Packet to Oracle’s leading communications portfolio will enable service providers and enterprises to deliver innovative solutions that will change the way we interact, conduct commerce, deliver healthcare, secure our homes, and much more,” stated Hurd.

Andy Ory, CEO of Acme Packet, added in a statement that the company was excited to team up with Oracle.

“…we believe that together we can rapidly accelerate the transformation to all-IP communications networks across the globe,” said Ory.

The acquisition will help Oracle to accelerate its offering of reliable and secure communications from any device across any network. Adding Acme Packet will bolster Oracle’s networking unit, most especially through Acme Packet’s Session Border Control Technology, which Oracle can leverage to speed up the deployment of all-IP networks to help enterprises and service providers.