The transaction is anticipated to close in the first half of 2013
Oracle has agreed to acquire Acme Packet, a provider of session border control technology, for about $1.7bn, to expand its offerings in next-generation voice, data and unified communications services and applications.
Massachusetts-based Acme Packet offers networking equipment that delivers voice, video and data across Internet networks and is a competitor to networking giant Cisco.
Oracle president Mark Hurd said: "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."
Oracle Communications senior vice president and general manager Bhaskar Gorti said service providers and enterprises need comprehensive communications applications that will allow them to effectively engage with their customers.
"This combination will enable secure and reliable delivery of real-time interactive communications through the most comprehensive, best-in-class communications portfolio in the industry," Gorti said.
Acme Packet chief executive officer Andy Ory said: "Together with Oracle, we expect to provide customers with purpose-built, innovative solutions to accelerate the deployment of all-IP networks and help deliver a consistent experience across all services, devices and networks."
The transaction is anticipated to close in the first half of 2013 and is subject to Acme Packet stockholder approval, certain regulatory approvals and other customary closing conditions.
Acme Packet's applications are deployed by over 1,900 service providers and enterprises in 109 countries across the world.
Acme Packet's revenue decreased to $70.7m for the fourth quarter of 2012, compared to $83m for the same period in 2011.
The company reported a net loss of $2m for the quarter, or $0.03 loss per share, compared to a net income of $8.7m, or $0.12 earnings per share, for the same period last year.