Extreme Networks Buys Brocade Data Centre Business

Extreme Networks continues to bolster its data centre credentials with the acquisition the data centre switching, routing, and analytics business of Brocade.

Brocade of course is currently in the process of being acquired by chip maker Broadcom, after it sought to acquire the fibre channel and storage area networking specialist for $5.5 billion (£4.5bn) last year.

Despite the fact that Broadcom’s acquisition of Brocade has not yet closed, it has already sold Brocade’s Wi-Fi unit (Ruckus Wireless) for $800m (£640m) to Arris International.

Data Centre Networking

And Broadcom is doing the same thing by selling off the Brocade Communications division. Under the terms of the deal, Extreme will pay $55m (£44m) in cash for Brocade Communications.

That deal however is dependent on the closing of Broadcom’s acquisition of Brocade.

It is clear that Extreme is seeking to bolster its data centre networking credentials for enterprise customers with the deal.

“The addition of Brocade’s data centre networking business significantly strengthens our position in the expanding high-end data centre market and reinforces our strategy of delivering software-driven networking solutions focused on enterprise customers,” said Ed Meyercord, President and CEO of Extreme Networks.

“Today’s announcement, 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,” he added.

“Moreover, this acquisition is important as it expands our commercial relationship with Broadcom,” continued Meyercord. “We already have our 200 Series of value oriented switches leveraging Broadcom’s FASTPATH operating system software and this transaction will only broaden our strategic partnership.”

“Extreme is highly complementary to our data centre switching, routing, and analytics business on many levels, and represents a positive outcome for our customers, partners, and employees,” said Lloyd Carney, CEO of Brocade. “Our two companies have similar strategic visions and believe that innovation will increasingly be driven through software capabilities that allow customers to successfully transform their networks for digital business.

There was no word on possible job losses as a result of the acquisition.

Acquisition Spree?

It should be noted however that Extreme Networks has been in acquisitive mood lately.

Last September for example Extreme Networks acquired Zebra’s wireless LAN business for $55m.

Zebra now focuses on mobile computers, scanners and printers, RFID systems, and software and services for identifying, tracking and managing critical assets, people and transactions.

Extreme has also entered into an agreement with Avaya to be the stalking horse bidder to acquire its networking business in an auction process.

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