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Extreme Network seals US$180m acquisition

16 Sep 2013

Extreme Networks has entered into a definitive agreement to acquire all outstanding stock of Enterasys Networks in an all cash transaction valued at US$180m.

As network switching providers in enterprise, data centre and cloud, the companies will work together to extend their products and technologies.

"The combination of Extreme Networks and Enterasys is significant in that it brings together two companies with distinct strengths addressing the key areas of the network, from unified wired and wireless edge, to the enterprise core, to the data centre and cloud," says Zeus Kerravala, principal analyst and president of ZK Research.

"With an open software approach, the companies can drive product innovations and customers will benefit from their increased resources and larger scale."

The combined company will be committed to continue to support the product roadmaps of both companies going forward to protect the investments of current customers and avoid any disruption to businesses.

Within approximately two years, the combined companies expect that ExtremeXOS, Extreme Networks advanced network operating system, will be extended to incorporate additional features that are available in the Enterasys network operating systems and fully support both hardware platforms.

"Since its first release in 2004, ExtremeXOS has been developed with a Linux abstraction layer that makes it relatively easy to extend ExtremeXOS to support other vendors' switching hardware," said Chuck Berger, President and CEO of Extreme Networks.

"Combining Enterasys technologies and products including their Coreflow modular switches, IdentiFi wireless and the NetSight system management application will extend and complement our product offering which we expect will provide significant added value to the current customers of both Extreme and Enterasys."

The companies' revenue will be approximately double that of either company alone with the significantly increased scale expected to enable greater investments in R&D to accelerate innovation and bring better technologies and products to market faster.

"Our number one priority is to ensure an even more positive customer experience by preserving the value of our current customers' investments and combining the best of both companies' technologies and talent," added Chris Crowell, President and CEO of Enterasys Networks.

Enterasys Networks, based in Salem, NH, is a privately held provider of wired and wireless network infrastructure and security solutions. It has approximately 900 employees and $US330 million in annual revenues.