Feeds

Extreme Networks coughs $180m for 'no overlap' rival Enterasys

Doubles customer base without treading on own toes, reckons beancounter

Secure remote control for conventional and virtual desktops

Plucky upstart Extreme Networks has swallowed the larger, privately held Ethernet switching player Enterasys Networks for $180m in cold hard cash - and some shares.

The buy makes Extreme the fourth largest Ethernet switching maker on the planet in revenue terms, behind Cisco, HP and Huawei, according to ZK Research.

NASDAQ-listed Extreme said the the Enterasys buy will add some circa $340m top line revenues (PDF) to its $300m sales engine.

Both companies promised to "support" product roadmaps to "protect the investment of customers and avoid any disruption to businesses".

Extreme said its network OS will include features available in the Enterasys' network OS and hardware platform within two years.

The 900 staff at Enterasys will add to the 758 at Extreme. CEO Chuck Berger is to be remain at the top, and his counterpart Chris Crowell will retain a high profile role yet to be revealed.

The sale of Enterasys signals the end of the road for Cabletron Systems, a once mighty biz that raked in $1bn a year at its peak.

It split into four in the year 2000, creating Riverstone Networks, Aprisma Management Technologies, Global Network Technology Services and Enterasys.

Lucent snapped up Riverstone, GTNS was shuttered and CA came in for Aprisma MT.

ZK Research said a number of smaller players below the big three were fighting for relative scraps of business.

"There are simply too many vendors for whatever share remains after Cisco and HP take their chucks, so consolidation is sorely needed," said analyst Zeus Keravala.

However, he reckons the deal is all gravy for Extreme because it doubles its customer base "with almost no overlap".

The transaction - which Extreme funded with cash reserves and by borrowing $75m - marks a hefty loss for Enterasys owner, the Gores Group, which itself took the company private in 2006 for $386m.

The Gores Group also took a majority stake in Siemens Enterprise Communication in 2008, but the plan to create an "end to end UC" player with Enterasys clearly didn't work. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.