Extreme Networks has announced that it’s spending $55 million to buy Brocade’s data center business. This acquisition comes just three weeks after Extreme announced a $100 million bid for Avaya’s network assets.
As part of the deal, Extreme will scoop up the SLX and VDX switches and SLX and MLX routers, Brocade’s Workflow Composer software, and other data center software and hardware assets. The company will also seek to retain “a majority” of Brocade’s data center employees, though some layoffs are likely.
Ed Meyercord, Extreme’s president and CEO, said on a conference call with investors “Brocade and Extreme have a common vision of software-driven networking solutions.” He said the acquisition will expand Extreme’s presence in large enterprise data centers.
Extreme’s strategy is to be a pure-play networking vendor that focuses on unified wired and wireless from the edge to the data center core. Meyercord said the company will leverage Brocade’s data center customers as candidates for edge and WLAN sales.
On the revenue front, Meyercord predicted that Brocade will add $230 million in revenue in fiscal 2018. He also predicted that if both the Avaya and Extreme deals go through, Extreme should pass the billion dollar revenue mark in fiscal 2018.
Sold For Parts
The Extreme announcement settles a significant portion of Brocade’s disposition after Broadcom announced last year that it would buy Brocade’s Fibre Channel business and sell off its IP networking units. This February, Arris made an $800 million bid for Brocade’s Ruckus Wireless and ICX campus assets.
However, some assets still need to find a home, including software products such as vRouter and vADC.
The Extreme deal is expected to close within sixty days of Broadcom’s closure of its Brocade acquisition.