Extreme Networks, Inc. (Nasdaq: EXTR) will acquire Enterasys Networks, Inc. in an all cash transaction valued at $180 million. Enterasys Networks, based in Salem, NH, is a privately held provider of network infrastructure and security solutions. It has approximately 900 employees and $330 million in annual revenues.
Significantly increased scale is expected to enable greater investments in R&D to accelerate innovation and bring better technologies and products to market faster. It is also planned that the operating margin of the combined company will increase over time as synergies are realized.
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’ 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. Customers would benefit by having a single network operating system that delivers functionality across both product lines and is designed to allow customers to seamlessly choose which hardware platform best meets their deployment needs.
“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.”