Extreme Networks has signed an asset purchase agreement with Brocade Communications Systems to buy the company’s Switching, Routing and Analytics (SRA) data center business.
“We expect this agreement directly with Brocade to accelerate our ability to close our acquisition of the data center business,” said Ed Meyercord, president and CEO of Extreme Networks.
The acquisition of Brocade’s data center networking business will strengthen Extreme’s position in the networking market and expands the company’s portfolio of data center, core, campus and edge networking solutions.
Extreme will acquire customers, personnel and technology assets from Brocade, further solidifying Extreme as a top solution provider for enterprises in its target verticals of education, hospitality, healthcare, retail, transportation and logistics, manufacturing and government.
Purchasing the data center networking asset directly from Brocade does not impact Extreme’s partnership with Broadcom. Extreme anticipates that the transaction will be accretive to cash flow and earnings for its fiscal year 2018, which began on July 1, and expects to generate over $230 million in annualized revenue from the acquired assets.