Extreme Networks Wins Bid for Avaya’s Networking Business
SAN JOSE, Calif., June 1, 2017 -- Extreme Networks, Inc. ("Extreme") (NASDAQ: EXTR) has announced that it is the winning bidder to acquire Avaya Inc.'s ("Avaya") networking business. The assets of Avaya's networking business unit will therefore be sold to Extreme for approximately $100 million, in accordance with the terms and conditions of the asset purchase agreement entered into March 7, 2017. The final agreement has been approved by the United States Bankruptcy Court for the Southern District of New York and is expected to close on or shortly after July 1, 2017, subject to customary closing conditions and regulatory approvals.
"This strategic acquisition will be another milestone in the execution of Extreme's growth strategy and clearly establishes Extreme as the third largest competitor in our enterprise markets and the only company in the world exclusively focused on delivering the highest quality end-to-end, wired and wireless enterprise IP networking," said Ed Meyercord, President and CEO of Extreme Networks. "The conclusion of the auction process signals a big step forward in making this transaction a reality. Avaya's networking business complements our existing portfolio and will significantly broaden Extreme's enterprise solutions capabilities across our vertical target markets. We are moving forward with our integration planning for both Avaya Networking and the Brocade Data Center Networking business."
Extreme will host a live webinar on June 14, 2017 to unveil its post-close go-to-market positioning and combined product roadmap with the Avaya Networking assets.
As previously announced, Extreme anticipates the transaction will be accretive to cash flow and earnings for its fiscal year 2018, which begins on July 1, and expects to generate over $200 million in annualized revenue from the acquired networking assets from Avaya. The announcement builds on Extreme's strategy to expand the company's state-of-the-art portfolio of data center, core, campus and edge networking solutions through a series of strategic acquisitions. In October 2016, the company closed its acquisition of the wireless LAN business from Zebra Technology Corporation, which is expected to generate over $115 million in annualized revenue in fiscal year 2018. In March, Extreme announced it entered into an agreement to acquire Brocade Communications Systems, Inc.'s data center switching, routing, and analytics business from Broadcom following the closing of Broadcom's acquisition of Brocade. The Brocade transaction, once closed, is expected to generate over $230 million in annualized revenue from the acquired assets.
About Extreme Networks
Extreme Networks, Inc. (EXTR) delivers software-driven networking solutions that help IT departments everywhere deliver the ultimate business outcome: stronger connections with customers, partners and employees. Wired to wireless, desktop to data center, on premise or through the cloud, we go to extreme measures for our customers in more than 80 countries, delivering 100% insourced call-in technical support to organizations large and small, including some of the world's leading names in business, hospitality, retail, transportation and logistics, education, government, healthcare and manufacturing. Founded in 1996, Extreme is headquartered in San Jose, California. For more information, visit Extreme's website or call 1-888-257-3000.
Source: Extreme Networks
