Extreme Networks is buying Brocade’s data center networking assets for $55 million in cash. The company made a joint announcement with Broadcom, in light of the fact that Broadcom is in the process of buying Brocade. Extreme will close on the Brocade assets within 60 days following Broadcom‘s acquisition of that company.
Yes, there are a lot of companies to keep track of here. And there’s more!
Extreme has been on the hunt. Earlier this month, it announced it was the primary bidder for Avaya’s networking business as part of Avaya’s bankruptcy auction. Extreme has bid about $100 million for the Avaya assets.
“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,” said Ed Meyercord, president and CEO of Extreme Networks, in a prepared statement.
Extreme expects the Brocade acquisition to generate over $230 million in annual revenue. At the time of the Avaya announcement, Extreme said it expected Avaya’s networking business to generate a minimum of $200 million in revenue in fiscal 2018.
Meyercord said that Extreme’s purchase of the Brocade assets also expands its relationship with Broadcom. “We already have our 200 Series of value oriented switches leveraging Broadcom’s FASTPATH operating system software, and this transaction will only broaden our strategic partnership,” he added.