RTTNews | Aug 10, 2021 08:08AM EDT

08:07 Tuesday, August 10, 2021 (RTTNews.com) - Extreme Networks, Inc. (EXTR), a cloud-driven networking company, on Tuesday announced its intention to acquire newly created Ipanematech SAS, the Software-Defined Wide Area Networking division of Infovista.

Extreme expects that Infovista will enter into a definitive purchase agreement with it for 60 million euros or about $73 million, that will close in October.

Ipanema is a privately held company, currently part of Infovista and majority owned by Private Equity firm Apax Partners with a minority stake owned by Thoma Bravo. Ipanema's solutions are currently deployed in over 100,000 sites and serve more than 400 customers.

Extreme plans to leverage the combination to establish an infinitely distributed and secure solution within the ExtremeCloud portfolio which will add more flexibility, capability, and security when connecting locations, applications, and devices.

The addition of Ipanema may also be helpful to establish a second technology center of excellence for Extreme in Europe and deepen the company's European customer presence.

Extreme expects the acquisition to be earnings neutral in fiscal 2022 and add to earnings in fiscal 2023.

Moelis & Company LLC is serving as a strategic financial advisor for Extreme Networks. EXTR is currently trading in pre-market at $11.00, down $0.18 or 1.61 percent from previous close.

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