Extreme Networks said it would buy Zebra Technologies wireless business for $55 million in cash.
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This includes a series of new access point (AP) offerings, including Zebra’s wall plate and tri-radio APs, which Meyercord says will provide versatility and agility across a variety of vertical markets.
Extreme Networks expects to generate over $115 million in annualized revenue from the acquired WLAN assets from Zebra. The deal is expected to close in the fourth quarter, giving Extreme “customers, personnel and technology assets” from Zebra.
With the purchase, Extreme will get Zebra’s wireless LAN 802.11ac high-speed wireless access portfolio, which includes Zebra’s WiNG wireless operating system, NSight advanced network troubleshooting package as well as a managed service suite that Extreme does not now offer, said Extreme President and CEO Ed Meyercord.
Gartner wrote of Zebra’s WLAN portfolio in a recent report: “Zebra should be on the shortlist for any WLAN opportunities in in-store retail, hospitality, manufacturing, transportation and logistics and other verticals that have data collection or location requirements”.
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.
Pat Grillo, president and CEO of Atrion, a Branchburg, N.J. -based solution provider and Extreme partner, said the new wireless and security technologies being acquired give Extreme more firepower against competitors that offer end-to-end solutions.
The Zebra business will be folded into Extreme’s ExtremeWireless product line. Zebra’s broad range of differentiated products, deep understanding of its customers and continued investment in R&D ensure that the company offers highly relevant solutions globally that help customers take advantage of key technology trends including the Internet of Things, mobility and cloud computing.
This acquisition will expand Extreme Networks’ wired and wireless software-driven networking solutions and complements its vertical market focus.
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The cash will go towards reducing Zebra’s debt.
