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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.