Extreme Networks Acquires Enterasys - Customer FAQ

  • 1.  Extreme Networks Acquires Enterasys - Customer FAQ

    Posted 09-17-2013 17:37
    Question: What was announced?
    Extreme Networks announced that they have signed agreements to purchase all outstanding stock of Enterasys for US $180 million in cash in a cash-free, debt-free transaction. The closing of the transaction is subject to customary anti-trust regulatory approvals and is expected to close in the fourth calendar quarter of 2013. Following the closing of the transaction, Enterasys will become a wholly owned subsidiary of Extreme Networks and the two companies will continue to fully support their existing customer base.

    Question: Why is Extreme acquiring Enterasys?
    Enterasys has a strong portfolio of products, complementary technologies, and a talented workforce that allow Extreme to accelerate innovation and offer a comprehensive set of networking solutions to current and future customers.

    Question: What is the name of the combined company?
    Enterasys will become Extreme Networks.

    Question: How will integration of the two companies take place?
    Our ultimate goal is to prevent disruption to the way we serve our customers and to minimize the impact of the transition on employees and daily operations of both companies. The plans for specific functions and facilities have not yet been defined. As additional details regarding plans are known, we will communicate as quickly as possible.

    Question: How will this affect our customers?
    Customers will benefit from a more comprehensive product portfolio as we combine the best of both technologies. Simultaneously, Extreme will continue to support both product lines - hardware and software for years to come. Enterasys will not disrupt the natural lifecycle of our products. The modular CoreFlow2 ASICs, IdentiFi wireless and our network management and security solutions are the key drivers for the merger of Enterasys and Extreme. Customers can expect accelerated delivery of new networking capabilities including Software Defined Networking (SDN).

    Question: How will the Enterasys products and services be integrated with Extreme?
    Current products will continue their development roadmaps into the future, while we begin cross pollinating the advanced features of both companies’ technologies into future releases – 18 to 30 months into the future.

    Question: Where will the combined company’s office locations be?
    At the close of the transaction, Extreme will maintain its headquarters in San Jose, CA, as well as a large presence in Raleigh, North Carolina and Chennai, India. Enterasys will continue to have their primary location in Salem, NH as well as support major global office locations.

    Question: Who will make up the new leadership team?
    Chuck Berger will lead the combined company as the President and Chief Executive Officer. Chris Crowell, current CEO of Enterasys, has agreed to have a prominent role in the future combined organization. Enterasys leadership will continue to play a prominent role in the new business, with announcements forthcoming.