SAN JOSE, Calif., May 31,
2017 /PRNewswire/ -- Extreme Networks,
Inc. ("Extreme") (NASDAQ: EXTR) today announced that it is the
winning bidder to acquire Avaya Inc.'s ("Avaya") networking
business. The assets of Avaya's networking business unit will
therefore be sold to Extreme for approximately $100 million, in accordance with the terms and
conditions of the asset purchase agreement entered into
March 7, 2017. The final agreement
has been approved by the United States Bankruptcy Court for the
Southern District of New York and
is expected to close on or shortly after July 1, 2017, subject to customary closing
conditions and regulatory approvals.
"This strategic acquisition will be another milestone in the
execution of Extreme's growth strategy and clearly establishes
Extreme as the third largest competitor in our enterprise markets
and the only company in the world exclusively focused on delivering
the highest quality end-to-end, wired and wireless enterprise IP
networking," said Ed Meyercord,
President and CEO of Extreme Networks. "The conclusion of the
auction process signals a big step forward in making this
transaction a reality. Avaya's networking business complements our
existing portfolio and will significantly broaden Extreme's
enterprise solutions capabilities across our vertical target
markets. We are moving forward with our integration planning for
both Avaya Networking and the Brocade Data Center Networking
business."
Extreme will host a live webinar on June
14, 2017 to unveil its post-close go-to-market positioning
and combined product roadmap with the Avaya Networking assets.
As previously announced, Extreme anticipates the transaction
will be accretive to cash flow and earnings for its fiscal year
2018, which begins on July 1, and
expects to generate over $200 million
in annualized revenue from the acquired networking assets from
Avaya. The announcement builds on Extreme's strategy to expand the
company's state-of-the-art portfolio of data center, core, campus
and edge networking solutions through a series of strategic
acquisitions. In October 2016, the
company closed its acquisition of the wireless LAN
business from Zebra Technology Corporation, which is expected to
generate over $115 million in annualized revenue in
fiscal year 2018. In March, Extreme announced it entered into an
agreement to acquire Brocade Communications Systems, Inc.'s data
center switching, routing, and analytics business from Broadcom
following the closing of Broadcom's acquisition of Brocade. The
Brocade transaction, once closed, is expected to generate over
$230 million in annualized revenue
from the acquired assets.
Additional Resources
- Extreme Acquisitions & Integrations Page
Forward Looking Statements
Except for the historical
information contained herein, the statements in this release,
including those concerning Extreme's business outlook, future
financial and operating results, and overall future prospects are
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements speak only as of the date
of this release. Actual results or events could differ materially
from those anticipated in those forward-looking statements as a
result of certain factors, including: our ability to consummate the
acquisition of Avaya's networking business; our ability to close
the Brocade transaction; our ability to successfully integrate the
Avaya and Brocade assets into the current Extreme business; failure
to achieve targeted revenues and forecasted demand from end
customers; a highly competitive business environment for network
switching equipment; the possibility that we might experience
delays in the development or introduction of new technology and
products; customer response to our new technology and products; and
a dependency on third parties for certain components and for the
manufacturing of our products.
More information about potential factors that could affect
Extreme's business and financial results is included in Extreme's
filings with the U.S. Securities and Exchange Commission,
including, without limitation, under the captions: "Management's
Discussion and Analysis of Financial Condition and Results of
Operations," and "Risk Factors". Except as required under
the U.S. federal securities laws and the rules and
regulations of the U.S. Securities and Exchange
Commission, Extreme Networks disclaims any obligation to
update any forward-looking statements after the date of this
release, whether as a result of new information, future events,
developments, changes in assumptions or otherwise.
About Extreme Networks
Extreme Networks,
Inc. (EXTR) delivers software-driven networking solutions that
help IT departments everywhere deliver the ultimate business
outcome: stronger connections with customers, partners and
employees. Wired to wireless, desktop to data center, on premise or
through the cloud, we go to extreme measures for our customers in
more than 80 countries, delivering 100% insourced call-in technical
support to organizations large and small, including some of the
world's leading names in business, hospitality, retail,
transportation and logistics, education, government, healthcare and
manufacturing. Founded in 1996, Extreme is headquartered
in San Jose, California. For
more information, visit Extreme's website or call
1-888-257-3000.
Extreme Networks and the Extreme Networks logo are either
trademarks or registered trademarks of Extreme Networks,
Inc. in the United States and/or other
countries. Other trademarks are the property of their
respective owners.
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SOURCE Extreme Networks, Inc.