SAN JOSE, Calif., July 17, 2017 /PRNewswire/ -- Extreme
Networks, Inc. (NASDAQ: EXTR) announced today that it has completed its acquisition of Avaya, Inc.'s ("Avaya") networking
business. The acquisition supports the company's growth strategy to lead the enterprise networking market with end-to-end
software-driven solutions for enterprise customers from the data center to the wireless edge.
"This is an exciting day for Extreme and a strategic milestone for our company that further enables us to deliver the
end-to-end networking solutions and services enterprise customers across our target vertical markets need to run their
businesses," said Ed Meyercord, President and CEO of Extreme Networks. "In addition to acquiring
networking assets that complement and strengthen our capabilities, we are expanding our bench of talented and experienced
employees, partners and networking customers. We've already seen great participation from new and existing partners and customers
during our recent closing roadmap webinar, which is a key indicator of the mutual excitement for this deal."
"As I've worked with the leadership teams of both companies throughout this process, it's been clear this is the right move
for all of us – one that will accelerate growth for both Extreme Networks and Avaya," said Kevin
Kennedy, President and CEO of Avaya. "We believe the addition of our complementary, award-winning wired, WLAN and Fabric
technology will not only strengthen Extreme Networks' competitive position but also create strategic opportunities for customers
and partners. We look forward to continuing Avaya's focus on growth within our core, industry-leading Unified Communications and
Contact Center solutions."
As part of this transaction, Extreme acquired customers, personnel and technology assets from Avaya. The acquisition
strengthens Extreme's position as a leader across the education, healthcare and government markets with the addition of
Avaya's award-winning fabric technology for highly secure, simplified access, management and control. The acquisition also
strengthens Extreme's switching portfolio, including a new family of high performance modular switches, software tools and IoT
technology.
"Avaya's networking business is a strategic fit for Extreme Networks that strengthens the company's position in the enterprise
market," said Zeus Kerravala, Analyst and Founder of ZK Research. "Avaya's strength in the core
and campus perfectly complements Extreme's market focus. Additionally the acquisition is a positive move for Extreme, Avaya and
both customer bases as it creates a company with best-in-class products that span the entire enterprise network."
Extreme continues to anticipate 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 $200 million in
annualized revenue from the acquired networking assets from Avaya.
Additional Resources
Forward Looking Statements
Except for the historical information contained herein, the statements in this release, including those concerning
Extreme's business outlook, future financial and operating results, and overall future prospects are "forward-looking statements"
within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements speak only as of the date of this release. Actual results or events could differ materially from those anticipated in
those forward-looking statements as a result of certain factors, including: our ability to successfully integrate the Avaya
networking business into the current Extreme business; failure to achieve targeted revenues and forecasted demand from end
customers; a highly competitive business environment for network switching equipment; the possibility that we might experience
delays in the development or introduction of new technology and products; customer response to our new technology and products;
and a dependency on third parties for certain components and for the manufacturing of our products.
More information about potential factors that could affect Extreme's business and financial results is included in Extreme's
filings with the U.S. Securities and Exchange Commission, including, without limitation, under the captions: "Management's
Discussion and Analysis of Financial Condition and Results of Operations," and "Risk Factors." Except as required under
the U.S. federal securities laws and the rules and regulations of the U.S. Securities and Exchange
Commission, Extreme Networks disclaims any obligation to update any forward-looking statements after the date of this
release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.
About Extreme Networks
Extreme Networks, Inc. (EXTR)
delivers software-driven networking solutions that help IT departments everywhere deliver the ultimate business outcome: stronger
connections with customers, partners and employees. Wired to wireless, desktop to data center, on premise or through the cloud,
we go to extreme measures for our customers in more than 80 countries, delivering 100% insourced call-in technical support to
organizations large and small, including some of the world's leading names in business, hospitality, retail, transportation and
logistics, education, government, healthcare and manufacturing. Founded in 1996, Extreme is headquartered in San
Jose, California. For more information, visit Extreme's website or call 1-888-257-3000.
Extreme Networks and the Extreme Networks logo are either trademarks or registered trademarks of Extreme
Networks, Inc. in the United States and/or other countries. Other trademarks are the property of their
respective owners.
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SOURCE Extreme Networks, Inc.