Deals

Data center do-si-do: Extreme Networks acquires Enterasys for $180M

Image Credit: Poul-Werner

Extreme Networks is acquiring rival Enterasys Networks for $180 million.

Enterasys provides wired and wireless network infrastructure and security solutions. Its switches, routers, and Wi-Fi gateways help organizations build and manage secure networks.

Extreme Networks also helps organizations set up their network infrastructure and offers an “advanced modular network operating system” called ExtremeXOS.

Both companies have solutions for wireless LAN and mobility, data centers, and security. Together, they will combine their products and technologies to provide “some of the most advanced, high performance, and open solutions in the market,” according to a statement issued this morning. Extreme said it anticipates integrating Enterays’ software with ExtremeXOS within two years.

The merged company is expected to have a total annual revenue of $630 million and gain a greater share of the Ethernet switching market, where it competes with giants like Cisco.

“Significantly increased scale is expected to enable greater investments in R&D to accelerate innovation and bring better technologies and products to market faster,” said the statement. 

Extreme has had a rough few years. It has significantly reduced its workforce, made a number of CEO changes, and falling profits.

Enterasys is a spinoff of Cabletron Systems, which went private in 2006 with a $386 million sale to the Gore Group and Tennebaum Capital Partners. It works with customers like Toyota, Sprint, the U.S. Department of Defense, and the University of Southern California.

Earlier this year Extreme Networks partnered with Lenovo and EMC in another effort to edge in on Cisco.

More information:

Extreme Networks delivers networks for the mobile world. The company's open network solutions enable a seamless user experience providing a platform for improved business agility. From the converged mobile edge of enterprises to virtua... read more »

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