Extreme Networks completes Ipanema acquisition for €60 million
Cloud networking co Extreme Networks has completed its acquisition of Ipanema, the cloud-native, enterprise SD-WAN division of Infovista.
The €60 million all-cash deal, which closed ahead of schedule, will see Extreme augment its ExtremeCloud portfolio with Ipanema’s SD-WAN capabilities, adding more flexibility, capability, and security when connecting locations, applications, and devices.
Further, the acquisition establishes a second technology centre of excellence for Extreme in Europe and deepens the company’s customer presence in the region. Ipanema has more than 400 customers and its solutions are deployed across more than 100,000 sites.
Kristian Thyregod (pictured), who was the president of global enterprise for Ipanema, is now SVP of strategy and market development for Extreme Networks.
He said: “The market response to this acquisition has been overwhelmingly positive across EMEA. Together, we’ll work to further cement Extreme’s leadership position by extending the company’s addressable market and scaling global innovation – helping customers reduce the complexity and costs of managing increasingly distributed networks. Our team is thrilled to join Extreme and will make an immediate impact.”
Extreme plans to leverage Ipanema’s existing relationships with leading MSPs and XSPs as part of its go-to-market strategy across EMEA.
“The close of the Ipanema acquisition accelerates our leadership position and growth opportunities in cloud networking by opening the door to new software subscription services within our ExtremeCloud portfolio," said Ed Meyercord, president and CEO, Extreme Networks.
"Our customers and partners have expressed great excitement about our vision and how this deal will continue to provide a competitive advantage and clear market differentiation. Our M&A expertise and focus on execution allowed us to close ahead of schedule and we’re thrilled to have so many talented Ipanema employees join Team Extreme,” Meyercord added.
The acquisition will also give Extreme a framework to build out SASE features and, in the words of CTO Nabil Bukhari, "create a rich ecosystem that offers customers the flexibility needed to run their business within the Infinite Enterprise, offering better speed, performance, and security, all managed through a single interface".
Bukhari continued: " We’re focused on extending the features of ExtremeCloud portfolio to help customers deliver best-in-class experiences as they extend their businesses anywhere and everywhere."
Extreme purchased Ipanema in an all-cash deal valued at €60 million from Infovista, who is currently owned by Private Equity firm Apax Partners. Moelis & Company LLC served as a strategic financial advisor for Extreme Networks.
On the details of the transaction, Extreme expects the deal to have neutral impact on Non-GAAP EPS in FY22 and accretive to non-GAAP EPS in FY23. The company said it will will provide additional information when it reports fiscal Q1 earnings.