Extreme Networks, Inc (NASDAQ:EXTR) Acquires Enterasys Networks, Inc.


Dallas, Texas 09/17/2013 (Financialstrend) – Worldwide provider of network infrastructure equipment and LAN switching solutions, Extreme Networks, Inc (NASDAQ:EXTR) caters to enterprises, data centers, hospitals, hotels, universities, telecommunications companies and government agencies. The company offers modular or chassis-based Ethernet connectivity solutions through its Black Diamond products. The company also provides RidgeLine management software system, SummitWM family of wireless network controllers, professional and training services as well as support services.

On Monday, September 16 the stock closed at $4.37, around 0.92% up from its previous close. At the current price the stock is trading along its recently marked 5 year high of $4.66. The 52-week low remains at $2.99. The stock has surged over 24% in past three months gaining around $0.84 per share.

Extreme Networks, Inc (NASDAQ:EXTR) has recently entered into an agreement to acquire all outstanding stock of Enterasys Networks, Inc. in an all cash deal valued at $180 million.  The agreement has got formal approval from the board of directors of each company. Both the companies would continue to operate separately till the closure of the transaction. The recent rally in its stock prices is largely attributed to this headline.

Based in Salem, provider of wired and wireless network infrastructure and security solutions, Enterasys Networks, employees the staff of more than 850 and has reported yearly revenues of over $325 million.

Enterasys technologies and product lines would extend and complement Extreme Networks, Inc (NASDAQ:EXTR)’s product offerings, directly adding value to customers of both the companies. The revenue would almost double following the acquisition and the increase scale would allow more investments in research and development to accelerate development of better technologies and products.

This acquisition would help the company to extend its technologies and products to provide high performance, open solutions in the market owing to its leadership in the enterprise, data center and cloud. Customers would largely benefit through the open software approach which can fuel product innovations through increasing resources and scale.