Thursday, April 30, 2009

Acme Packet buys Covergence for $22.8M

By Mass High Tech Staff

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Network communications equipment maker Acme Packet Inc. reports it has purchased privately-held Maynard-based Covergence Inc. for approximately $22.8 million.

Under terms of the deal, Burlington-based Acme Packet (Nasdaq: APKT) will pay $22.2 million in stock and $600,000 in cash for the telecommunications equipment maker.

Acme Packet makes session border controller (SBC) equipment. According to Acme Packet officials, Covergence’s software-based SBCs will complement Acme Packet’s existing Net-Net family of custom hardware-based SBCs. And the acquisition will add four of the Fortune 25 to Acme Packet’s base of enterprise customers.

The core Covergence team will be relocated to Acme Packet’s headquarters in Burlington. Covergence’s Ken Kuenzel, will join the office of the chief technology officer; Jim Donovan will be named vice president, enterprise product management; and Marty Falaro will become vice president, business development at Acme Packet.

Acme Packet reported a net profit of $11.57 million for fiscal 2008, on revenue of $116.4 million.