Extreme Networks acquires Enterasys Networks for $180m

Ethernet firm Extreme Networks has acquired network, security and management solutions firm Enterasys Networks in a deal worth $180 million (£113 million) in cash.

The move is set to make Extreme Networks the fourth largest Ethernet switch maker in the world after Cisco, HP and Huawei.

The combined company will continue to "support the product roadmaps of both companies going forward", "protect the investments of current customers" and "avoid any disruption to businesses", Extreme Networks said in a statement.

"We believe customers will benefit by having a single network operating system that delivers functionality across both product lines and is designed to allow customers to seamlessly choose which hardware platform best meets their deployment needs," it added.

Privately held Enterasys Networks has $330 million (£207.5 million) in annual revenues and 900 employees that will join Extreme Networks, which is publicly listed.

Extreme Networks suspects that revenues following the merger will be approximately double that of either company before the acquisition.

"Combining Enterasys technologies and products...will extend and complement our product offering which we expect will provide significant added value to the current customers of both Extreme and Enterasys," said Chuck Berger, president and CEO of Extreme Networks.

"The combination of Extreme Networks and Enterasys is significant in that it brings together two companies with distinct strengths addressing the key areas of the network, from unified wired and wireless edge, to the enterprise core, to the data centre and cloud," commented Zeus Kerravala, principal analyst and president of ZK Research.

"With an open software approach, the companies can drive product innovations and customers will benefit from their increased resources and larger scale."