The transaction purchase price is $55 million. Net proceeds from the sale will be used to pay down debt.
“Combining Zebra’s WLAN technologies and marquee retail, transportation and logistics, and hospitality customers with Extreme Networks’ wired and wireless capabilities, recognized as visionary in the Gartner Magic Quadrant, creates the industry’s number three WLAN enterprise campus powerhouse,” said Ed Meyercord, president and CEO of Extreme Networks. “WLAN is the fastest growing segment in the networking industry.”
“The WLAN business is an ideal fit with Extreme Networks as a pure play networking company, and we are proud of our WLAN employees for the contributions they have made to Zebra and will make in the future,” said Anders Gustafsson, CEO of Zebra Technologies. “This transaction enables us to increase our focus on delivering the best Enterprise Asset Intelligence solutions, in collaboration with our partners, that give our customers real-time visibility into their operations so they can make smarter decisions.”
This acquisition will strengthen and expand Extreme Networks’ end-to-end, wired and wireless software-driven networking solutions and complements its vertical market focus. Extreme will acquire customers, personnel and technology assets from Zebra.
Zebra WLAN customers will benefit from Extreme Networks’ entire portfolio. The acquisition positions Extreme Networks as a leader across the hospitality, education, healthcare, manufacturing and state and local government markets and extends the company into new verticals such as retail, transportation and logistics and broader hospitality, creating additional opportunities for growth. All WLAN customers in each vertical market served, regardless of the solutions they own, will have access to Extreme Networks’ ExtremeWorks services offerings.
Extreme Networks expects the transaction to be accretive to cash flow and earnings for its fiscal year 2017 and expects to generate over $115 million in annualized revenue from the acquired WLAN assets.
Zebra will continue to offer customers a complete end-to-end solution – from mobile computers and scanners to specialty printers, RFID, software and services – for identifying, tracking and managing critical assets, people and transactions.