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Extreme Networks to acquire Brocade's data centre business

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March 30, 2017

Extreme Networks is planning to acquire Brocade's data centre business consisting of its switching, routing, and analytics components for $55 million.

The acquisition is part of a bid to improve its portfolio and compete headon against Cisco.

The deal follows Ethernet switch and wireless vendor Brocade's acquisition by Broadcom for $5.9 billion in 2016.

EN expects the deal to push its revenue by about $230 million. For the full-year 2016, the division posted revenue of $528 million.

Two weeks ago, Extreme said it plans to pay about $100 million to acquire Avaya's networking business just months after Avaya said it was seeking Chapter 11 bankruptcy protection.

It said the Avaya deal will generate over $200 million in annual revenue. Last year, Extreme Networks completed the acquisition of Zebra Technology's wireless LAN business for $55 million.

Ed Meyercord, president of Extreme Networks, asserted-- "The addition of Brocade's data center networking business significantly strengthens our position in the expanding high-end data center market and reinforces our strategy of delivering software-driven networking solutions focused on enterprise customers."

Meyercord added that this latest acquisition will also expand its commercial relationship with Broadcom.

For his part, Brocade CEO Lloyd Carney said-- "Extreme Networks is highly complementary to our data center switching, routing, and analytics business on several levels, and represents a real positive outcome for our customers, partners, and employees."

The acquisition is the latest in a series of several consolidations within the legacy networking industry. Last month, Arris Technologies said it will acquire Ruckus Wireless from Broadcom for $800 million.

Source: Extreme Networks.


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