Extreme Networks to splash $55m on Brocade's data centre biz
Further beefs up to take on the might of Cisco
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). ®