This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Oracle Shares Gain On Tekelec Deal

NEW YORK ( TheDeal) -- Oracle Corp shares advanced following its purchase of network management outfit Tekelec Global Inc.

The Tekelec deal reflects Oracle's decision to expand its hold on technology that helps telecoms manage increasing traffic over their networks. The deal comes just months after Oracle said it would pay $2.1 billion for Acme Packet Inc. Oracle shares added 1.5% to $32.02.

Tekelec's services include policy control, or helping carriers to handle traffic, target spam, charge for services and other facets of communications. Tekelec also does deep packet inspection, or digging into transmissions to help measure usage and enforce policy.

The latest deals reflect Oracle's push into telecom services, and the growing interplay between information technology and communications.

Oracle CEO Larry Ellison is not alone in targeting companies that manage the flow of data over wireless and wireline networks. Cisco Systems Inc. and others have made acquisitions in network policy control and related services that Tekelec provides.

Ovum Ltd. analyst Dana Cooperson suggested that a range of companies, from telecom networkers such as Alcatel-Lucent SA, Huawei Investment Holding Co. Ltd. and Ericsson AB to IT-oriented competitors such as Hewlett-Packard Co., SAP AG and SAS Institute Inc., might "do more strategic soul-searching." They might look at areas such as managing customer experience, data analytics and other aspects of network intelligence.

As IT and telecoms become more closely entwined, Cooperson said that mobile networks are drawing much of the attention.

"Intelligent network control is the most acute need because of the huge increases in traffic due to mobile broadband and the scarcity of mobile spectrum," she said.

Cultivating new markets may be especially sensitive for Oracle now. The stock has been pounded over the past week after it reported disappointing hardware and software sales.

Oracle did not reveal how much it is paying for its most recent acquisition.

Tekelec, however, is a substantial company. A buyout group including Siris Capital Group LLC, ComVest Group, GSO Capital Partners LP, Sankaty Advisors LLC and ZelnickMedia paid $780 million to take the Morrisville, N.C., networking technology company private in January 2012. Tekelec sold its mobile messaging business to NewNet Communication Technologies LLC in August 2012.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CSCO $27.92 0.00%
ORCL $43.00 0.00%
PKT $9.46 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs