Extreme Networks is to acquire Zebra Technologies wireless LAN (WLAN) business for a reported $55m.
Bolstering Extreme’s end-to-end, wired and wireless software-driven networking offerings, the deal will see Extreme acquire Zebra’s customers, personnel and technology assets.
The buyout will help Extreme to penetrate new vertical markets such as retail, hospitality, transportation and logistics, expanding its reach across vertical markets.
Claiming that the combined WLAN business will create ‘the industry’s number three WLAN enterprise campus powerhouse’, Ed Meyercord, President and CEO of Extreme Networks, said:
“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.”
Extreme Networks hopes to generate $115 million in annualised revenue from the acquired WLAN assets, with the company keen to continue investment in the newly acquired technology.
The all-cash transaction is expected to close in the fourth quarter of 2016, subject to customary closing conditions including regulatory approvals.
Zebra will continue to offer end-to-end solutions to customers, with Anders Gustafsson, CEO of Zebra Technologies, saying that the deal will allow the company to focus on its Enterprise Asset Intelligence solutions.