Extreme CEO: Zebra Deal Will Grow Vendor's WLAN Business
Extreme will build market share, add technologies and gain access to large customers after it buys Zebra's WiFi business unit, says company President and CEO Ed Meyercord.Ed Meyercord knew that Extreme Networks needed to bulk up its wireless LAN capabilities. The company was built on switches for data center and campus networks, and it extended its reach into the wireless networking field in 2013 with its $180 million acquisition of Enterasys Networks. However, the WLAN space is among the fastest growing segments of the larger networking market, and although Cisco Systems has remained the top vendor, other companies were rapidly adding to their portfolios. Hewlett Packard Enterprise (HPE) in 2015 bought Aruba Networks, while Brocade this year spent $1.2 billion for WiFi equipment provider Ruckus Wireless. Meyercord, who took over as Extreme's president and CEO in 2015, knew his company needed to expand what it was doing in the wireless networking space. The question was whether to build the technology in-house or follow the leads of HPE and Brocade and buy a company. In the end, Meyercord opted to buy, announcing this month that Extreme was spending $55 million to acquire the WLAN business of Zebra Technologies, a unit Zebra itself inherited two years ago when it bought Motorola Solutions for $3.45 billion. The deal will be a boon for Extreme, said Meyercord, who took that message to customers, partners, analysts and journalists during an event last week at the New England Patriots' Gillette Stadium in Foxboro, Massachusetts.
"The acquisition of the wireless LAN business from Zebra … strengthens Extreme's position in the marketplace and heightens Extreme Networks as a brand," the CEO told eWEEK.