Oracle buying Tekelec for network signaling software

The deal reflects Oracle's desire to grow its telco business

Oracle is filling out its product stack for communications with the acquisition of Tekelec, which provides network signaling, policy control and subscriber data management software for mobile data networks. Terms of the deal, which is expected to close in the first half of this year, were not disclosed.

The explosive growth of smartphones and mobile services has put new strains on mobile networks, and Tekelec's products can help providers manage these workloads as well as optimize profits, according to its website.

Oracle plans to roll Tekelec's capabilities into its communications product portfolio and will combine them with products gained through the pending acquisition of network equipment vendor Acme Packet, according to a statement.

The Tekelec deal will also give Oracle greater entry into the world's largest service providers, as its customers include T-Mobile, AT&T, Verizon and Orange.

Oracle is keen on increasing its telco business, and comments made by CEO Larry Ellison during the company's earnings call last week foreshadowed the Tekelec deal.

"What we'd like to become is one of the most strategic suppliers to telcos overall, which involves broadening our footprint of what we supply them," he said. Oracle will achieve this through its own engineering efforts as well as acquisitions, Ellison added.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

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Tags business issuestelecommunicationTekelecsoftwareAcme PacketOracleMergers and acquisitions

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