The acquisition of Avaya Networking will provide Extreme Networks (“Extreme”) with a broader set of networking technologies and capabilities that complement our existing product portfolio and enhance our position in the marketplace. The FAQ below will help you understand today’s announcement and what to expect in the coming weeks and months. Today’s announcement supports our growth strategy and builds on our value proposition, as Extreme continues to lead the enterprise campus market with our end-to-end, wired and wireless software-driven network solution technologies. We are excited to share more information at the conclusion of the auction process.
What did Extreme announce today?
Over the past several months, Extreme has been evaluating the technology, go-to-market strategy and customers of Avaya Networking. After close, review of the potential combination and impact on Extreme’s growth strategy, Extreme negotiated and executed an Asset Purchase Agreement (“APA”) with Avaya to acquire its networking business in an auction process as part of Avaya’s reorganization process in bankruptcy court.
What is the strategic rationale of bidding for Avaya Networking?
Extreme delivers differentiated software driven networking solutions to our enterprise campus customers in target verticals. Avaya Networking’s technology, heritage and enterprise campus focus complements Extreme’s strategy.
What exactly is Extreme Networks acquiring?
Extreme has filed its intention to acquire all of the assets of Avaya’s networking business.
How much revenue is this expected to add once closed?
Avaya Networking has not yet delivered standalone-audited financials for the business but is expected to yield annual revenues in excess of $200 million. Extreme believes there are potential financial synergies and complementary products between the two businesses across Extreme’s vertical markets so that the transaction will be accretive to the Company’s earnings and cash flow beginning in fiscal 2018. The Company will update its quarterly guidance, including total revenue, once the deal is consummated.
How would customers and partners benefit from a combined Extreme Networks and Avaya Networking?
Avaya customers and partners:
Avaya customers and partners will be supported by Extreme’s award winning customer service and have access to Extreme’s integrated solutions portfolio for the campus enterprise. Extreme’s single pane of glass network management, analytics, and control platforms plan to be expanded to support Avaya’s switching portfolio and will deliver unified visibility and control from the data center through the core, access layer and access point to the end user device.
Extreme customers and partners:
Extreme customers and partners will have access to Avaya’s pioneering and award-winning switching fabric technology for highly secure, simplified access, management and control of their data center, core and edge switching environments.