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Extreme Networks snaps up Brocade’s data center networking business for $55M
Extreme Networks Inc. has acquired Brocade Communications Systems Inc.’s data center switching, routing and analytics business as new owner Broadcom Ltd. spins off parts of Brocade it doesn’t need.
The deal is valued at $55 million in cash, consisting of $35 million at closing and $20 million in deferred payments, as well as potential performance-based payments over a five-year term. Broadcom, which announced plans in November to acquire Brocade for acquire Brocade for $5.9 billion, previously sold Brocade’s Ruckus Wireless and ICX Switch business for $800 million in cash and is rumored to be looking to sell Brocade’s virtual Application Delivery Controller business to F5 Networks Inc.
Extreme Networks gains Brocade’s VDX, MLX and SLX switches and all software such as its Virtual Application Delivery Controller, Virtual Router and SDN Controller packages. Chief Executive Officer Ed Meyercord said in a statement that the acquisition of Brocade’s data center networking business significantly strengthens Extreme Networks’ position in the expanding high-end data center market and reinforces their strategy of delivering software-driven networking solutions focused on enterprise customers.
Extreme Networks Vice President Norman Wright also told eWeek that the company’s focus was “to provide end-to-end solutions and be a pure-play networking provider, from the campus through the core [networking] out to the access layer on the wireless LAN [local area networking], providing management software over the top.”
The acquisition follows Extreme Networks’ acquisition of Avaya Inc.’s networking business earlier this month for $100 million and their acquisition of Zebra Technologies Corp.’s wireless LAN business in September for $55 million.
“Today’s announcement, coupled with our recent announcements regarding our position as the stalking horse bidder of Avaya’s networking business and the successful completion of the integration of Zebra’s wireless LAN business, along with Extreme’s organic investments in R&D, will result in a state-of-the-art, newly refreshed portfolio of enterprise solutions for our customers,” Meyercord added.
The deal depends on the likely second-quarter closing of Broadcom’s acquisition of Brocade, which was approved by shareholders Jan. 26.
Image: Brocade
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