Extreme swallows Brocade’s data center networking business for $55M

Extreme Networks continued to amass a nice nest of data center technology saying today it would buy Brocade’s data center networking business will be sold to Extreme for $55 million in cash from its current owner Broadcom.

Broadcom bought Brocade last year for about $5.5 billion but has since sold off Brocade’s Ruckus Wireless Wi-Fi business for $800 million to Arris International and now the data center networking business to Extreme.

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Extreme said it expects the deal to push it revenues to over $1 billion for its Fiscal 2018 year which begins July 1. Specifically, it expects the Brocade deal, pending approval, to bring generate more than $230M in revenue. Extreme recently agreed to be a bidder for Avaya’s networking business which it expects will bring it $200M in revenues should Extreme win the bid. Some of Avaya’s technology strengths included its networking fabric and Network Micro-Segmentation technology that helps customers secure enterprise components.

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