Extreme EXTR 16,81 +0,13 +0,78% has announced that they have closed a deal direct with Brocade Unfortunately, we could not get stock quote BCRD this time., rather than wait for the Broadcom AVGO 630,12 +19,96 +3,27% acquisition. (Extreme Networks Completes Acquisition of Brocade’s Data Center Networking Business). This is different to the planned acquisition announced in March.
Broadcom’s recent announcement that they have refiled with CIFUS has caused some consternation with other organisations such as Arris ARRS 31,66 0,00 0,00%, who have delayed their acquisition of Ruckus from the combined Broadcom/Brocade. Extreme has taken a different route and has done a deal directly with Brocade. The purchase means that Brocade’s SLX platform, VDX and CES switches, MLX and CER routers; and the Workflow Composer and Automation Suite applications are now in Extreme’s portfolio. Extreme expect to generate $230mn in annual revenue from the new assets.
“This is an exciting day for Extreme as we have now significantly strengthened our position in the expanding high-end data center market with the industry leading solution for enterprise customers. Through a series of synergistic acquisitions, Extreme is now a top player in the enterprise networking industry and expects to generate over $1 billion in annual revenues. Today’s announcement is not only a significant milestone for our growth strategy, but it also allows us to assist more customers around the globe with end-to-end software-driven solutions to drive their digital transformation initiatives.” – Ed Meyercord, President and CEO, Extreme Networks.
Nabil Bukhari, who used to be part of Brocade’s team has moved to Extreme.
“Our strategic vision has been closely aligned with Extreme Networks’ vision throughout this process. Extreme’s commitment to build on the innovation and momentum that we have achieved, including a completely refreshed data center portfolio over the past year, will provide our new and existing customers and partners with business continuity that enables them to accelerate digital transformation. Extreme and Brocade are excited to work closely together through the integration process to ensure a smooth transition and our world-class data center team is excited to have joined the Extreme family.” – Nabil Bukhari, Vice President, Data Center, Extreme Networks.