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 Subscribe to Bloggers speak out on BradReese.Com Extreme Enterasys will become the new E & E of networking The new E & E of networking will have approximately 1,691 employees with annual revenue of $630 million, so here's the rest of the facts...
Hummelstown, PA: Thu, 9/12/13 - 7:07pm View comments
How so? Well, everybody competes against Cisco, but the competition between Arista and E & E (Extreme/Enterasys) has at least in my opinion, become absolutely fierce.
The facts about the Extreme Networks acquisition of Enterasys: Extreme Networks announced that it has signed an agreement to purchase all the outstanding stock of Enterasys for US $180 million in cash in a cash-free, debt-free transaction. The closing of the transaction is subject to customary anti-trust regulatory approvals and is expected to close in the fourth calendar quarter of 2013. Following the closing of the transaction, Enterasys will become a wholly owned subsidiary of Extreme Networks and the two companies will continue to fully support their existing customer base.
Extreme Networks is scheduled to pay $180 million in cash. Of this, Extreme Networks has received a preliminary commitment letter from Silicon Valley Bank to provide a minimum of $75 million in acquisition financing. Any balance amount not financed through the acquisition financing will be funded from the Extreme Networks' cash on hand. Additionally, Extreme Networks intends to maintain a sufficient cash cushion to comfortably fund the ongoing operations of both businesses.
At the close of the transaction, Extreme Networks will maintain its headquarters in San Jose, CA, as well as a large presence in Raleigh, North Carolina and Chennai, India. Enterasys will continue to have their primary location in Salem, NH, with other major offices located in Toronto, Canada and Shannon, Ireland.
Joint integration planning teams will be formed to help ensure a smooth integration of Enterasys employees and customers into Extreme Networks. The ultimate goal is to prevent a disruption to the way customers are served and to minimize the impact of the transition on employees and daily operations. The plans for specific functions and facilities have not yet been defined. As additional details regarding plans are known, they will be communicated as quickly as possible.
Within the combined company, increased scale will allow innovation acceleration and by focusing on the combined company's R&D expenditures, the company will have the ability to accelerate its vision for high-performance, modular, open networking while having the ability to respond to the emerging needs of specific customer segments, with the resources to invest and deliver. It will also have a stronger position from which to support the offerings of technology alliance partners.
Customers will benefit from a more comprehensive product portfolio as the best of both technologies are combined. Simultaneously, Extreme Networks will continue to support both product lines — hardware and software for years to come. Customers can expect accelerated delivery of new networking capabilities including Software Defined Networking (SDN.) The combined company will design and deliver a broadened roadmap of products and solutions spanning Ethernet switching for a wide range of deployment needs, wireless, network management and Software Defined Networking. The Enterasys IdentiFi wireless LAN product line will extend Extreme Networks' wireless offering to provide customers with a full line of access points and controllers. NetSight, Enterasys' network management tool, will be extended to support Extreme Networks platforms. ExtremeXOS, Extreme Networks' high performance, modular network operating system, will be extended over the next 18-30 months to support both hardware portfolios. ExtremeXOS modularity will be leveraged to expand and include the best features from Enterasys EOS, supporting new protocols, security features and network management capabilities.
The upgrade to the enhanced version of ExtremeXOS will provide customers with a single O/S that will support the entire combined portfolio and will be a straight forward progression for customers using Enterasys or Extreme Networks switches. This extended version of ExtremeXOS will give customers flexibility to choose which hardware they deploy in the future.
Current products will continue their development roadmaps into the future as cross pollinating of the advanced features of both company's technologies are developed for future releases. There will be no change in how current products are supported. Customer investments that support their operations and businesses will be protected.
Upon completion of the transaction, with significantly greater investments in R&D, the combined company will be able to accelerate innovation in order to deliver market-leading networking capabilities.
Current sales reps will continue to support both the products and the services that customers have already deployed through Extreme Networks and Enterasys. Furthermore, as the broadened product and services roadmap is defined in upcoming months, sales reps will be communicating that progress on how future capabilities will be supporting customer needs.
"Enterasys Networks has used its OneFabric architecture to unify the wired and wireless infrastructure. "Centralized network management, in addition to the OneFabric Control Center, Mobile IAM and IdentiFi applications to allow IT organizations to manage, monitor and create policy for the vendor's wired and wireless components in the access layer. Strengths
The Gores Group completes $386 million acquisition of Enterasys Networks
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