The stock of Extreme Networks, Inc (NASDAQ:EXTR) closed at 9.36 maintaining its recent position. This company has today given its word citing that they have struck an agreement with Brocade Communications Systems, Inc (NASDAQ:BRCD). As a matter of fact, it is expected that soon Extreme Networks, Inc will be the sole owner of “Brocade”) data center networking business. It will be taking it over from Broadcom Ltd (NASDAQ:AVGO).
Brocade has today made its announcement in an 8-K filing with the Securities and Exchange Commission citing that some delays will be inevitable. According to some top reliable sources, the parties struck an agreement to re-file their joint voluntary notice. This was done amicably through the Committee on Foreign Investment situated in the United States.
Brocade has made it clear that by October 28, 2017 it will indeed be closing its fourth fiscal quarter. Extreme at the moments has its hopes held high purporting that it will soon be closing its much anticipated transaction with Broadcom. In fact it went ahead to outline that it would be in about 2-3 business days.
The President and CEO of Extreme Networks, Ed Meyercord while recently addressing the company’s board of directors opined, “As we march toward becoming the third largest end-to-end enterprise networking provider, we are confident our acquisition of Brocade’s data center networking business will move forward.”
He added that the delay was rather beneficial to them as a member of the dealing since they obtained more time. They would thus in great comfort integrate Avaya operations as well as make prior preparations for their business combination with Brocade.
He was glad that the provider was working tirelessly to see to it that a smooth transition for new and existing employees was done.
Extreme is optimistic that the anticipated transaction with Brocade be accretive to cash flow as well as to the earnings for its fiscal year 2018.While speaking to a number of top news reporters recently, one of the top executives working with the provider outlined that they were looking forward to generate about $230 million in annualized revenue. This will of course be from the various acquired assets.
