Transaction solidifies Extreme’s position in the WLAN market with a combined #3 share for its target enterprise campus market
Extreme Networks and Zebra Technologies Corporation recently announced that Extreme Networks has agreed to acquire Zebra’s wireless LAN (WLAN) business in an all-cash transaction. The transaction is expected to close in the fourth quarter of 2016 (which is the second quarter of fiscal 2017 for Extreme Networks), subject to customary closing conditions including regulatory approvals.
Ed Meyercord, President and CEO of Extreme Networks said, “Combining Zebra’s WLAN technologies and marquee retail, transportation and logistics, and hospitality customers with Extreme Networks’ wired and wireless capabilities, recognized as visionary in the Gartner Magic Quadrant, creates the industry’s number three WLAN enterprise campus powerhouse. WLAN is the fastest growing segment in the networking industry. Our heritage of delivering innovative and pioneering technology is reinforced with today’s announcement, underscoring our commitment to providing customers worldwide with unified visibility and control across their wired and wireless networks.”
Anders Gustafsson, CEO of Zebra Technologies said, “The WLAN business is an ideal fit with Extreme Networks as a pure play networking company, and we are proud of our WLAN employees for the contributions they have made to Zebra and will make in the future. This transaction enables us to increase our focus on delivering the best Enterprise Asset Intelligence solutions, in collaboration with our partners that give our customers real-time visibility into their operations so they can make smarter decisions. We continually evaluate our business to ensure we are focusing on the areas which generate the strongest growth and highest return profiles, and today’s announcement exemplifies that commitment to our shareholders.”
This acquisition will strengthen and expand Extreme Networks’ end-to-end, wired and wireless software-driven networking solutions and complements its vertical market focus. According to a leading industry analyst firm, the combined WLAN business will be the third largest provider in its combined target markets and fourth largest by market share. Extreme will acquire customers, personnel and technology assets from Zebra. Extreme Networks expects the transaction to be accretive to cash flow and earnings for its fiscal year 2017 and expects to generate over $115 million in annualized revenue from the acquired WLAN assets.
