Extreme Networks today acquired Infovista’s Ipanema SD-WAN division in an all-cash deal valued at $73 million. The acquisition bolsters Extreme’s product portfolio beyond wireless and LAN switching and extends its reach to the European market.

Extreme plans to integrate the Ipanema SD-WAN platform into its ExtremeCloud portfolio to automatically adjust application traffic traveling over the WAN based on real-time network conditions.

Ipanema’s SD-WAN technology “only scratched the surface of its potential,” Extreme CTO Nabil Bukhari said  in a statement. “We believe Ipanema’s technology will play a critical role in helping us continue to provide fast, secure, and superior customer experiences.”

However, the deal is about more than intellectual property. With the addition of Ipanema, Extreme inherits more than 100,000 sites and approximately 400 customers, primarily in Europe.

“By acquiring Ipanema, Extreme extends its market leadership position in cloud with features that will help reduce complexity for customers when it comes to operating and managing their increasingly distributed networks,” Extreme CEO Ed Meyercord said in a statement. “Further, we’ll extend our go-to-market and R&D footprint in Europe, where Ipanema is an established player."

Ipanema isn’t Extreme’s first foray into the SD-WAN space — the company acquired some SD-WAN functionality with the acquisition of Aerohive in 2019 — and the move mirrors that of rival networking vendors Aruba and Juniper. Last summer HPE Aruba purchased pure play SD-WAN vendor Silver Peak for $925 million, and Juniper paid $450 million for SD-WAN vendor 128 Technology.

The Ipanema acquisition is expected to close in October.

Extreme Rebounds in Q4

The news comes shortly after Extreme Networks posted strong fourth-quarter revenues for the 2021 fiscal year. The company saw Q4 revenues surge nearly 30% year over year and 10% from the prior quarter to $278 million. The company also saw net incomes rebound during the quarter, up 150% to $10.3 million from a $21.2 million loss in the year-ago quarter.

The vendor posted total revenue of $1 billion and net incomes of $1.9 million for the full 2021 fiscal year.

Extreme is targeting revenue between $250 million and $265 million and net income between $100,000 and $12.1 million in the current quarter.