Extreme Networks agreed to acquire all outstanding stock of Enterasys in an all cash transaction valued at $180 million.
Enterasys Networks, based in Salem, NH, is a privately held provider of wired and wireless network infrastructure and security solutions. It has approximately 900 employees and $330 million in annual revenues.
Extreme Networks, which is based in San Jose, California, specializes in high-performance Ethernet switching for cloud, data center and mobile networks.
Extreme Networks has received a preliminary debt commitment to finance at least $75 million of the purchase price, with the balance to be funded from cash on hand.
The companies said they are committed to continue to support the product roadmaps of both companies going forward.
"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. "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."
"Our number one priority is to ensure an even more positive customer experience by preserving the value of our current customers' investments and combining the best of both companies' technologies and talent," said Chris Crowell, President and CEO of Enterasys Networks.
- In November 2005, Enterasys was acquired by The Gores Group and Tennenbaum Capital Partners in a going-private, $386 million transaction.
- In 2008, the Gores Group, a U.S.-based private equity firm, acquired a 51 percent stake in Siemens Enterprise Communications. The Siemens Enterprise Communications business was merged operationally with two of Gores' portfolio companies -- Enterasys, a network equipment and security solutions provider and SER Solutions, a call center software company.