Extreme Networks gets more networking with the acquisition of the networking technology business of Avaya-- a company currently in Chapter 11 bankruptcy-- for $100 million.
"The addition of Avaya's networking business is consistent with our growth strategy and will broaden Extreme's enterprise solutions capabilities by complementing our product portfolio across our vertical markets," Extreme CEO Ed Meyercord says. "Furthermore, we expect the Avaya business to generate over $200m in annual revenue, increase our market share and offer new opportunities for our customers."
Avaya filed for Chapter 11 bankruptcy protection back in January 2017 in order to facilitate a required restructuring of its balance sheet. The company describes the sale of the networking business as a "clear and positive path" for its networking customers and partners, since it should allow for a focus on unified communications and contact centre solutions.
Extreme has bought the networking business as primary bidder in a sales process under Bankruptcy Code-- meaning other interested parties can make own bids, with the $100m agreement setting the auction floor. The deadline for the transaction is on June 2017, the end of the Avaya fiscal Q3 2017.