Extreme Networks to acquire Enterasys for $180 million

Extreme Networks on Friday said it would buy rival vendor Enterasys Networks for $US180 million in cash.

Extreme Networks and Enterasys Networks together will combine and extend their world-class products and technologies to provide customers with some of the most advanced, high performance, and open solutions in the market as well as a superb overall customer experience., according the company.

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.

The company believes customers will 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, Identify 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 company mentioned in its press release.

“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,” said Chris Crowell, president and CEO of Enterasys Networks.

The companies’ revenue will be approximately double that of either company alone. 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 realised.

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.

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