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#WHO WILL BUY BROCADE IP BUSINESS FULL#
We will work with Broadcom as it seeks to find a buyer for our IP Networking business which includes a full portfolio of open, hardware and software-based solutions spanning the core of the data center to the network edge.” “Our best-in-class FC SAN solutions will help Broadcom create one of the industry’s broadest portfolios for enterprise storage. “This transaction represents significant value for our shareholders, who will receive a 47% premium from the Brocade closing share price on Friday, October 28, 2016, and creates new opportunities for our customers and partners,” said Brocade CEO Lloyd Carney. In addition, we are confident that we will find a great home for Brocade’s valuable IP networking business that will best position that business for its next phase of growth.” “In addition, we believe Extreme's desire to build on the innovation and momentum of our completely refreshed data center portfolio, including the new SLX family, as well as its intention to drive the ongoing success of our VDX and MLX families, will allow our customers and partners to continue to leverage the full benefits of our world-class portfolio.“With deep expertise in mission-critical storage networking, Brocade increases our ability to address the evolving needs of our OEM customers. And both companies consistently demonstrate a customer-first culture, placing a high value on excellence in customer and partner support.”
#WHO WILL BUY BROCADE IP BUSINESS SOFTWARE#
The companies both believe that innovation will increasingly be driven through software capabilities, allowing customers to successfully transform their networks for digital business.Ĭarney adds, “both companies are pure-play networking providers, serving the enterprise edge to the data center core. Lloyd Carney, CEO of Brocade, discusses the future of the joint venture by saying that the two companies have similar strategic visions. He comments, "as Extreme is the only pure-play end-to-end, wired and wireless enterprise IP networking company in the world, we believe Brocade's data center customers will benefit from our dedication to delivering high-quality, software-driven, secure networking solutions and the industry's highest rated customer support.” Meyercord says the acquisition will work to strengthen Extreme’s position in the high-end data center market, while reinforcing the company’s strategy of delivering software-driven networking solutions focused on enterprise customers. Additional potential performance based payment will go to Broadcom and will be paid over a five-year term.Įd Meyercord, president and CEO of Extreme Networks says, “coupled with our recent announcements regarding our position as the stalking horse bidder of Avaya's networking business and the successful completion of the integration of Zebra's wireless LAN business, along with Extreme's organic investments in R&D, will result in a state-of-the-art, newly-refreshed portfolio of enterprise solutions for our customers.”įrom these newly acquired assets, Extreme hopes to generate over $230 million in annualised revenue and for the acquisition to be accretive to cash flow and fiscal year 2018 earnings. This consists of $35 million at closing, and $20million in deferred payments.
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The transaction is expected to close within 2 to 3 months.īrocade's data center networking business will be sold to Extreme for $55 million. Both the ARRIS and Extreme deals are expected to close after the Brocade acquisition is completed. In February, it agreed to sell Brocade’s Ruckus Wireless and ICX Switch business to ARRIS International. to be the stalking horse bidder to acquire the company in an auction process. Broadcom is in the process of closing its acquisition of Brocade and indicated its intention to sell off the latter’s IP networking business.
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In March 2017, Extreme entered an agreement with Avaya Inc. In October 2016, Extreme completed the acquisition of Zebra Technology Corporation, with $115 million expected to be generated in revenue. This agreement will see Extreme acquire Brocade's data center switching, routing, and analytics business.Įxtreme specialises in software-driven network solutions, with a focus on strengthening customer, partner and employee connections.
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Now, Extreme Networks have come into the picture following the announcement of an agreement with Broadcom. Broadcom bought Brocade in November 2016 for $5.9 billion. The company has headquarters in Singapore and California.īrocade is a data center networking business that was founded in 1995. Broadcom Limited is a designer and developer of analog and digital semiconductor connectivity solutions.