Extreme Networks today announced it intent to acquire rival vendor Enterasys Networks in an all-cash deal for $180 million. The deal is expected to formally close in the fourth calendar quarter of 2013.
When Enterasys Networks and Extreme combine, the two companies will have a total annual revenue of approximately $630 million. Enterasys represents approximately half of that amount, with $330 million in annual revenues.
By acquiring Enterasys, Extreme expects to accelerate innovation faster than it could have on it own. Extreme aims to include innovations found in the Enterasys network operating system into Extreme's Linux-based ExtremeXOS operating system. That effort will take approximately two years.
"Since its first release in 2004, ExtremeXOS has been developed with a Linux abstraction layer that makes it relatively easy to extend ExtremeXOS to support other vendors' switching hardware," said Chuck Berger, president and CEO of Extreme Networks, in a statement. "Combining Enterasys technologies and products, including their Coreflow modular switches, IdentiFi wireless and the NetSight system management application, will extend and complement our product offering, which we expect will provide significant added value to the current customers of both Extreme and Enterasys."
Extreme Networks has growing its technology and its business reach all year. In January, the company announced support for the nascent Ethernet Audio Video Bridging (AVB) 802.1Q standard on its Summit X440, X460 and X670 switches. In April, the company announced its intent to build OpenFlow Software Defined Network switching gear under the project name 'Slalom'.
Partnership agreements with Lenovo and EMC were formally announced in July, further extending the reach of Extreme Network's solutions.
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist