Covergence Acquired By Acme Packet
Acme Packet Acquires Covergence
BURLINGTON, MA, APRIL 30, 2009 —Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, today announced that it has acquired privately-held Covergence, Inc. for consideration valued at approximately $22.8 million, consisting of approximately $22.2 million of Acme Packet common stock and an aggregate of $0.6 million in cash payments to stockholders of Covergence and tax withholding payments. The Maynard, Massachusetts based company is an emerging, innovative provider of software-based session border controllers (SBCs) for delivering VoIP/IP telephony, Unified Communications and Service-Oriented Architecture (SOA) applications within global 1000 enterprises.
“SIP trunking – with its compelling return-on-investment and increasing worldwide availability – will drive many enterprises to deploy it to even the smallest of locations,” stated Andy Ory, CEO and co-founder of Acme Packet. “With the acquisition of Covergence, Acme Packet accelerates its ability to now satisfy the SIP trunking SBC requirements of enterprise small offices and remote sites.”
Covergence’s software-based SBCs will complement Acme Packet’s existing Net-Net family of custom hardware-based SBCs by extending Acme Packet’s low-end product range to address the needs of small and remote enterprise locations. Available as hardened Unix-based software for Intel x86-class servers or as a virtual machine package, Covergence’s SBCs will provide Acme Packet’s distribution partners and enterprise customers with new, capital expenditure and operating expense friendly price points for smaller sites. Opportunities for Acme Packet partners will also include the physical integration of this software-based SBC with other enterprise IP networking or communications equipment. From a customer leadership perspective, the Covergence acquisition will add four of the Fortune 25 to Acme Packet’s growing base of enterprise customers.
The core Covergence team will be relocated to Acme Packet’s headquarters in nearby Burlington, Massachusetts. Three Covergence executives will be joining Acme Packet in roles closely related to their positions at Covergence: Ken Kuenzel, Office of the Chief Technology Officer; Jim Donovan, Vice President, Enterprise Product Management; and Marty Falaro, Vice President, Business Development.
Company to Host Live Conference Call and Webcast
The Company’s management team will review the acquisition of Covergence during its previously scheduled conference call and webcast at 5:00 p.m. eastern daylight savings time today. The conference call may be accessed in the United States by dialing (800) 230-1074 and using access code “APKT”. The conference call may be accessed outside of the United States by dialing (612) 332-1213 and using access code “APKT”. The conference call will be simultaneously webcast on the Company’s investor relations website, which can be accessed at www.ir.acmepacket.com. A replay of the conference call will be available approximately two hours after the call by dialing (800) 475-6701 and using access code 995307 or by accessing the webcast replay on the Company’s investor relations website.
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