Extreme Networks To Become WLAN Heavyweight With Purchase Of Zebra's Wireless LAN Business For $55M

Extreme Networks plans to acquire Zebra Technologies' wireless LAN business for $55 million, creating the industry’s third largest WLAN enterprise campus provider.

The San Jose, Calif.-based networking company said Zebra’s WLAN technology, which was purchased from Motorola Solutions in 2014, will generate more than $115 million in annualized revenue.

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.

"f you're a vendor trying to compete with Juniper Networks and Cisco -- they've got a lot of solutions end to end -- you want to have more of it. So this [acquisition] is going to help them with that," said Grillo. "Security is important right now and we’re doing a lot of wireless. ... This is a good thing for [channel partners]."

In addition to technology assets, the acquisition includes Zebra customers and personnel. The all-cash transaction is expected to close in the fourth quarter of this year.

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The deal will combine Zebra WLAN technology and customers with Extreme’s wired and wireless capabilities while expanding its end-to-end hardware and software networking solutions. Ed Meyercord, president and CEO of Extreme Networks, said Zebra’s market focus around hospitality, transportation and retail complements Extreme’s targeted vertical markets.

’WLAN is the fastest-growing segment in the networking industry,’ said Meyercord in a statement. ’Combining Zebra's WLAN technologies and marquee retail, transportation and logistics, and hospitality customers with Extreme Networks' wired and wireless capabilities … creates the industry's No. 3 WLAN enterprise campus powerhouse.’

Zebra’s full WLAN portfolio will become part of the existing Extreme wireless product line, which includes a series of new access point offerings, and will expand the company’s security offering with Zebra’s wireless intrusion prevention system.

In addition, Extreme will acquire Zebra’s AirDefense Security and Compliance solution that provides advanced 24x7 wireless monitoring tools to identify network attacks and vulnerabilities and instantly terminates the connection to rogue devices. Extreme has more than 20,000 customers in more than 80 countries.