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Extreme Networks Signs Agreement To Purchase Avaya's Networking BusinessSAN JOSE, Calif., March 7, 2017 /PRNewswire/ -- Extreme Networks, Inc. ("Extreme") (NASDAQ: EXTR) today announced it has entered into an asset purchase agreement with Avaya Inc. to acquire its networking business. Under the terms of the agreement, the assets of Avaya's networking business unit will be sold to Extreme for approximately $100 million, in accordance with the terms and conditions of the asset purchase agreement. "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," stated Ed Meyercord, President and CEO of Extreme Networks. "Furthermore, we expect the Avaya business to generate over $200 million in annual revenue, increase our market share and offer new opportunities for our customers. Although our agreement is subject to required approvals, the timing of which is uncertain, we expect the combined businesses can achieve synergies and provide accretion to Extreme's fiscal 2018 earnings and cash flow." Avaya announced it filed voluntary petitions under chapter 11 of the U.S. Bankruptcy Code on January 19, 2017. This agreement will constitute a primary bid for the networking business in a sale process being conducted under Section 363 of the U.S. Bankruptcy Code. As the stalking horse bidder, Extreme will be entitled to a break-up fee and expense reimbursement, if it ultimately does not prevail as the successful bidder at the required auction for Avaya's assets. The auction process and final agreement will be subject to the approval of the United States Bankruptcy Court for the Southern District of New York. In addition, completion of the transaction remains subject to customary closing conditions and regulatory approvals. The auction process and transaction closing are expected to conclude within 3 t 4 months. Conference Call About Extreme Networks 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. Forward Looking Statements 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/extreme-networks-signs-agreement-to-purchase-avayas-networking-business-300419633.html SOURCE Extreme Networks, Inc. |