SAN JOSE, Calif., Oct. 3, 2017 /PRNewswire/ -- Extreme
Networks, Inc. (NASDAQ: EXTR) today announced that it has signed an
asset purchase agreement with Brocade Communications Systems, Inc.
(NASDAQ: BRCD) to purchase the company's Switching, Routing and
Analytics (SRA) data center business for substantially the same
terms as the previously announced agreement between Extreme and
Broadcom. The transaction is expected to close within 30 days and
is subject to the satisfaction or waiver of customary closing
conditions.
"We expect this agreement directly with Brocade to accelerate
our ability to close our acquisition of the data center business,"
said Ed Meyercord, President and CEO
of Extreme Networks. "This is a very positive development for all
stakeholders, but especially for customers, partners and employees
of Brocade's data center networking business. Given all of the work
that has gone into our business integration planning and our
proposed product roadmap, Extreme is now poised to bring this deal
over the finish line."
The acquisition of Brocade's data center networking business
will strengthen Extreme's position in the networking market and
expands the company's state-of-the-art portfolio of data center,
core, campus and edge networking solutions. As part of the
transaction, Extreme will acquire customers, personnel and
technology assets from Brocade, further solidifying Extreme as a
top solution provider for enterprises in its target verticals of
education, hospitality, healthcare, retail, transportation and
logistics, manufacturing and government.
"We are pleased to move forward with an agreement to directly
divest our data center networking business to Extreme," said
Lloyd Carney, CEO of Brocade. "We
believe this decision will position the business for continued
success, and is in the best interests of our shareholders,
customers, partners and employees aligned with the business.
Extreme's complementary portfolio of products, coupled with its
planned continued investment into our roadmap and its commitment to
continued support of our products, make it a great fit for our
business and a positive outcome for our stakeholders."
Purchasing the data center networking asset directly from
Brocade does not impact Extreme's strategic partnership with
Broadcom, which will continue uninterrupted. Extreme continues to
anticipate the transaction will be accretive to cash flow and
earnings for its fiscal year 2018, which began on July 1, and expects to generate over $230 million in annualized revenue from the
acquired assets.
Additional Resources
- Extreme Acquisitions & Integrations Page
- Extreme Brocade SRA Acquisition Announcement
Forward Looking Statements
Except for the
historical information contained herein, the statements in this
release, including those concerning Extreme's acquisition of the
Brocade assets, its 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 successfully
close on and integrate the Brocade networking business 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.