Data Centre

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Extreme Networks to splash $55m on Brocade's data centre biz

Further beefs up to take on the might of Cisco

By Kat Hall

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Extreme Networks is to acquire Brocade Communications Systems' data centre, switching, routing, and analytics business for $55m (£44m) - part of a bid to beef up its portfolio and take on Switchzilla – aka Cisco.

The deal follows Ethernet switch and wireless vendor Brocade's acquisition by Broadcom for $5.9bn last year.

Extreme expects the acquisition to boost its revenue by $230m (£185m). For the full-year 2016 the business posted revenue of $528m (£424m).

Earlier this month Extreme said it plans to pay $100m (£80m) 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 $200m (£160m) in annual revenue.

Last year Extreme completed the acquisition of Zebra Technology's wireless LAN business for $55m.

Ed Meyercord, president of Extreme Networks, said: "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."

He said the deal will also expand its commercial relationship with Broadcom.

Lloyd Carney, chief exec of Brocade said: "Extreme is highly complementary to our data center switching, routing, and analytics business on many levels, and represents a positive outcome for our customers, partners, and employees."

The deal is the latest in a series of consolidations within the legacy networking sector. In February Arris Technologies said it will buy Ruckus Wireless from Broadcom for $800m (£643m). ®

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