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Cloud-based networking firm Extreme Networks (Nasdaq: EXTR) intends to purchase Ipanema, Infovista’s SD-WAN branch. Extreme’s ExtremeCloud portfolio will be expanded as a result of the acquisition, with additional cloud-managed SD-WAN and security solutions needed to power the ‘Infinite Enterprise.’
People’s work, connections, and interactions have become more fluid and diffused, expanding the network’s edge and resulting in the ‘Infinite Enterprise.’ Extreme’s solutions would enable the Infinite Enterprise by extending the connectivity required to power consumer-centric experiences anywhere and everywhere via a scalable cloud architecture.
Ipanema’s technology intelligently and dynamically modifies application traffic flows depending on real-time network conditions, resulting in enhanced performance and quality of experience even under the most challenging conditions across a variety of cloud-managed WAN connectivity types. Ipanema is a privately held corporation that is currently a part of Infovista and is mainly owned by Apax Partners, with Thoma Bravo holding a minority position.
Extreme Networks intends to use Ipanema’s capabilities to create an indefinitely distributed and secure solution inside the ExtremeCloud portfolio, further cementing the company’s position as one of the most advanced cloud platforms in the world. When integrating locations, apps, and devices, this will enable more flexibility, capability, and security, allowing Extreme to provide the greatest possible experience to clients and their consumers, no matter where they are on their journey to the Infinite Enterprise.
“Ipanema expands the ExtremeCloud portfolio by providing new cloud-managed SD-WAN connectivity and security capabilities, accelerating Extreme’s ability to meet the needs created by the Infinite Enterprise,” said Nabil Bukhari, Chief Technology Officer (CTO) at Extreme Networks. “In isolation, SD-WAN technology barely scratches the surface of its potential, and we believe Ipanema’s technology will play a critical role in helping us continue provide fast, secure, and superior consumer experiences. By building upon Ipanema’s innovation and performance, we’ll be able to provide customers more flexible and secure cloud-managed solutions to connect locations, people, applications, services, and devices with even greater speed and finesse.”
With the purchase of Ipanema, Extreme Networks will have a second technical center of excellence in Europe, as well as a stronger European customer base. Ipanema has formed agreements with managed services providers (MSPs) and systems integrators (SIs) around Europe to assist clients with the implementation, management, and scaling of cloud-based SD-WAN deployments. Ipanema’s solutions have been installed in over 100,000 locations and service over 400 clients.
Infovista is expected to engage into a definitive purchase agreement with Extreme for the purchase and sale of €60 million (about $73 million) in an all-cash transaction, subject to usual adjustments. The deal is likely to finalize in October 2021, pending negotiations with works lawyers. Extreme Networks has hired Moelis & Company LLC as a strategic finance advisor.
“By acquiring Ipanema, Extreme extends its market leadership position in cloud with features that will help to reduce complexity for customers when it comes to operating and managing their increasingly distributed networks,” said Ed Meyercord, President and CEO, Extreme Networks. “Tapping into the fast-growing and developing market segments of cloud-managed SD-WAN, and, in the future SASE, accelerates our topline growth potential and expands our opportunity to grow recurring revenue with additional SaaS applications. Further, we’ll extend our go-to-market and R&D footprint in Europe, where Ipanema is an established player. We’re excited to welcome the Ipanema team to Extreme, where together we’ll drive towards our next phase of accelerating growth.”
The planned transaction is part of Infovista’s strategic transformation as it sharpens its focus on delivering its cloud-native network lifecycle automation (NLA) platform designed for the 5G era to both Communications Service Providers (CSPs) and Enterprises.
“In dynamic and competitive networking and security markets, our Ipanema SD-WAN business has recently accelerated its expansion by acquiring and migrating customers, demonstrating the relevance of its unique cloud-native SD-WAN strategy. The planned acquisition will make this business thrive further,” said José Duarte, CEO of Infovista. “With this agreement, we are close to reaching another milestone in the execution of our strategy to make Infovista a global market leader in 5G and next-generation networks, focused on the growing network lifecycle automation requirements of our CSP and large enterprise customers.”