Extreme Networks agreed to buy all outstanding shares of Enterasys Networks for $180 million in cash on September 12, 2013. The acquisition officially closed on October 31, 2013, after the required antitrust waiting period expired. The price was subject to a post-closing working-capital adjustment.
What Extreme Networks bought and what it paid
Extreme Networks entered a stock purchase agreement with Enterprise Networks Holdings, Inc. to acquire all issued and outstanding Enterasys shares. The announced consideration was $180 million in cash, subject to an adjustment after closing based on working capital.
The November 1, 2013 closing filing reported the same $180 million cash purchase price qualification. It also stated that $100 million was funded through borrowings under credit facilities arranged for the transaction. The filings do not establish the final amount after any working-capital adjustment.
Enterasys was described in Extreme’s September 2013 announcement as having approximately 900 employees and $330 million in annual revenue. Those figures were company-reported at the time, not an independent valuation of the business.
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When did Extreme Networks buy Enterasys?
| Date | Event | What it meant |
|---|---|---|
| September 12, 2013 | Agreement announced and signed | Extreme agreed to acquire all outstanding Enterasys stock for $180 million in cash, subject to a post-closing working-capital adjustment. |
| October 15, 2013 | HSR waiting period expired | The U.S. Hart-Scott-Rodino waiting period expired at 11:59 p.m. Eastern. Extreme said customary closing conditions still remained. |
| October 31, 2013 | Transaction closed | The acquisition was completed, according to Extreme’s Form 8-K filed November 1. |
| November 1, 2013 | Closing disclosed | Extreme reported the completion, financing detail and the combined business’s reported customer base. |
Thus, September 12 was the signing and public announcement date; October 31 was the legal completion date. Referring to September as the date Extreme “bought” Enterasys confuses the agreement with the closing.
Why Extreme Networks pursued Enterasys
Extreme presented the transaction as a way to broaden its enterprise networking portfolio rather than as a purchase of a single product line. The companies said the combined business would cover network access, enterprise core, data-center networking, cloud, management and security.
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A wider wired and wireless portfolio
Extreme identified Enterasys products including Coreflow, modular switches, IdentiFi wireless and the NetSight system-management application as complements to Extreme’s existing offerings. The stated goal was coverage from the unified wired and wireless edge through the enterprise core, data center and cloud.
More management and security capabilities
Enterasys brought technologies that Extreme said would add network-management and security depth alongside switching and routing. At closing, Extreme described the combined portfolio as spanning software-defined networking, wired and wireless LAN access, management and security as well as data-center networking.
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One operating-system strategy across two hardware platforms
Extreme said it expected, within approximately two years, to extend ExtremeXOS so it could incorporate additional features available in Enterasys network operating systems and support both companies’ hardware platforms. That was an announced integration plan, not a documented result. The cited 2013 materials do not establish whether the timetable or full integration was achieved.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What was known at closing
Extreme’s November 1 closing announcement said the combined company had more than 12,000 customers. This is a historical company-reported figure from 2013, not a current customer count.
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The closing announcement characterized the resulting business as offering data-center networking; switching and routing; software-defined networking; wired and wireless LAN access; network management; and security. These descriptions explain the strategic rationale, but they do not by themselves prove that every planned product or system integration had been completed.
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Agreement versus completed acquisition
- Agreement: On September 12, 2013, the boards approved an all-cash stock purchase agreement covering all outstanding Enterasys shares.
- Regulatory step: The HSR waiting period expired on October 15, while other customary conditions were still outstanding.
- Closing: The purchase completed on October 31, 2013.
- Consideration: The stated amount was $180 million in cash, with a post-closing working-capital adjustment; $100 million of the closing price was financed through new credit-facility borrowings.
- Strategy: Broader enterprise, data-center, wired, wireless, management and security capabilities, plus a planned ExtremeXOS expansion across both hardware platforms.
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