Extreme to acquire Brocade data centre switch business

News Broadband Global 30 MRT 2017
Extreme to acquire Brocade data centre switch business
Broadcom is selling more assets as part of its merger with Brocade. The company agreed to sell Brocade's data centre switching, routing and analytics business to Extreme Networks for USD 55 million in cash. The payment consists of USD 35 million at closing and USD 20 million in deferred payments, as well as additional potential performance-based payments over the next five years. 

Extreme said the takeover will add over USD 230 million in annualized revenue, as well as adding to earnings and cash flow from 2018. The deal is expected to close within two months of Broadcom completing the takeover of Brocade. 

The takeover is expected to expand Extreme's position in the high-end data centre market and strategy of delivering software-driven networking for enterprise customers. The company has also made a bid to acquire assets from Avaya and earlier bought Zebra's wireless LAN business. 

Categories:

Fixed

Companies:

Broadcom,  Avaya,  Brocade,  Extreme Networks

Regions:

Global

Tags:

Enterprise equipment, Network equipment, M&A buyouts & divestments

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