Oracle to buy network gear maker Acme Packet for $1.9 billion
I don't know all of the specifics on APKT financials, but in their last quarter they did $65m in revenue. This was actually down from $70m the previous year. And looks like around $370m in cash and equivalents. So at $1.9b, they are being priced at cash + 6x sales.
Given the same metrics, PKT should be valued at $600m, which is about 70% higher than current price.
This is a crude estimate, but it gets the idea across that PKT is severely undervalued.