Extreme buying Avaya networking good for customers of both companies

The fate of Avaya’s networking business has been the subject of speculation for well over a year now. In December, I wrote about the most likely suitors for the business. Ideally, I would have liked to have seen Avaya remain a “full stack” solution provider and keep the group, but it appears that wasn’t in the bankruptcy cards. 

This brings us to the current news where the winner of the Avaya Networking sweepstakes is (drum roll… although its in the title) Extreme Networks. That’s correct: Purple Extreme Networks is purchasing the networking assets from Avaya (Red) that came to it from Nortel (blue), so from a color perspective, it all makes sense. 

+ Also on Network World: Extreme grabs Avaya’s networking business for $100M +

Under the terms of the agreement, the assets of the Avaya networking business unit will be sold to Extreme for about $100 million, which is great value for an organization that does about $200 million in revenue annually. 

Because Avaya is in the chapter 11 process, Extreme is considered the stalking horse bidder in what amounts to an auction process. Another company could potentially come along and make a higher offer at which time Extreme could choose to up its own bid or get paid a break-up fee and expense reimbursement.

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