Extreme Networks Completes Acquisition of Enterasys for $180 Million in Cash

Extreme Networks, Inc. has completed the acquisition of Enterasys Networks, Inc.

The combined company immediately becomes a networking industry leader with more than 12,000 customers.

Extreme Networks will have strategic focus on three principles:

• Scaled and differentiated products and solutions: It will increase R&D to accelerate the vision for high-performance, modular, open networking. The combined portfolio spans data center networking, switching and routing, Software-Defined Networking (SDN), wired and wireless LAN access, network management and security. The broader solutions portfolio can be leveraged to better serve existing and new customers. Extreme Networks will continue to enhance and support the product roadmaps of both companies going forward to protect the investments of customers and avoid any disruption to their businesses.
• Customer service and support: The company will augment the current outsourced support model by adopting Enterasys’ in-sourced expertise, continuing the heritage and commitment to customer experience. The expanded global network of channel partners and distributors will benefit from more services and support capabilities.
• Channels and strategic partners: Extreme will focus on expanding its existing partnerships with Lenovo and Ericsson as well as continue to add new strategic partnerships in the future. Additionally, Extreme will increase its focus on partnering with distributors and channel partners globally. The goal will be to develop and enhance relationships that grow revenue and profits for the company and its alliance and channel partners. At the same time, it is investing in infrastructure to make it as easy to do business with Extreme.

Extreme Networks expects to double its revenue, to over $600 million annually, and is now the fourth largest Ethernet networking vendor. (Results of CY13Q2 Dell-Oro Group L2/3 Ethernet market share report)

“We are committed to preserve and enhance our customer’s investments and existing portfolio lifecycles. Our vision is to provide superior products and services to our customers and lead the industry with networking solutions that allow IT organizations to accelerate business growth and efficiency, “said Chuck Berger, CEO, Extreme Networks. “Our current and future products and services will solve the networking challenges that are most critical to our customers’ success.”

“I am thrilled that we are combining with Extreme Networks. We now have the scale to execute on many fronts, and broaden our market reach. Our networking innovation will deliver the highest level of customer value. With our global footprint, broadened portfolio, highly skilled talent and customer-centric culture, we are well positioned to set the standard for the best customer experience,” said Chris Crowell, former CEO, Enterasys and now COO, Extreme Networks.

“Mobile, Social, Cloud, big data and the application economy are changing the landscape of business,” said Vala Afshar, CMO, Extreme Networks.  “We are well positioned with our people and portfolio to guide organizations through this digital transformation.”

Thomas Hanschitz, Strabag SE, large construction company in Austria, said: “Strabag selected Extreme Networks due to its high performance network solutions which are well suited to meet our application needs,” said Thomas Hanschitz, Strabag. “As Extreme Networks grows with the acquisition of Enterasys, we are looking forward to an expanded set of technology and a company with more resources, and continued great service.”

Rohit Mehra, VP of network infrastructure, IDC, said: “The combination of Extreme and Enterasys creates a network solution provider of significant size, both in the enterprise campus and datacenter market segments. With a portfolio of technology solutions that span across BYOD and mobility, cloud and datacenter, as well as security and network management, Extreme is expected to leverage portfolio and go-to-market strengths to garner the mind share it deserves. Of course, IDC will continue to monitor progress as Extreme takes the next steps in rationalizing its portfolio, building on its partnerships, and focusing on customer needs while accelerating R&D to bring innovative solutions to market.”

Bob Laliberte, senior analyst, Enterprise Strategy Group, said: “The merger of Extreme and Enterasys should be viewed as a positive development for both customers and partners. The new company has stated its intention to strengthen its combined customer base with its passionate commitment to support and services. As a result, both companies’ product lines will be fully supported for years to come. By combining resources and focusing on complementary technologies areas, the combined entity should be able to accelerate the time to market for innovative network solutions. Seamless product transitions and superior customer support will be critical elements to their success.“