Extreme Networks Wins Bid for Avaya’s Networking Business
June 2017 by Marc Jacob
Extreme Networks, Inc. ("Extreme") 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.
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.