Mexico. Extreme Networks, Inc. announced that it has signed an asset purchase agreement with Brocade Communications Systems, Inc. to acquire the company's data center business that includes Switching, Rounting and Analytics (SRA) for 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 satisfaction or waiver of closing conditions.
"We expect this direct agreement 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. Considering all the projects that have entered into our business integration planning and product roadmap proposition, extreme is poised to conclude this acquisition."
The acquisition of Brocade's data center networking business will strengthen Extreme's position in the networking market and expand the portfolio of data center, core and campus networking solutions. As part of the transaction, Extreme will acquire Brocade's customers, staff and technology assets, further cementing Extreme as a leading provider of enterprise solutions in its education, hospitality, healthcare, retail, transportation and logistics, manufacturing and government verticals.
"We are pleased to move forward with an agreement to directly sell 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 interest of our shareholders, customers, partners and business-aligned employees." Extreme's complementary product portfolio, coupled with its planned continued investment and commitment to supporting our products, make it a great ally for our business and a positive outcome for our stakeholders ."
Purchasing the data center networking asset directly from Brocade does not affect Extreme's strategic partnership with Broadcom, which will continue uninterrupted. Extreme continues to anticipate that the transaction will increase cash flow and earnings for its fiscal year 2018, which began July 1 and expects to generate more than $230 million in annualized revenue from acquired assets.
