Extreme Networks Signs Agreement to Purchase Avaya's Networking Business

Extreme Networks, Inc. announced it has entered into an asset purchase agreement with Avaya Inc. to acquire its networking business.  Under the terms of the agreement, the assets of Avaya's networking business unit will be sold to Extreme for approximately $100 million, in accordance with the terms and conditions of the asset purchase agreement.

Headquartered in Santa Clara, California, Avaya provides a complete portfolio of software and services for contact center and unified communications with integrated, secure networking— offered on premises, in the cloud, or a hybrid.

Avaya announced it filed voluntary petitions under chapter 11 of the U.S. Bankruptcy Code on January 19, 2017.  This agreement will constitute a primary bid for the networking business in a sale process being conducted under Section 363 of the U.S. Bankruptcy Code.  As the stalking horse bidder, Extreme will be entitled to a break-up fee and expense reimbursement, if it ultimately does not prevail as the successful bidder at the required auction for Avaya's assets.  The auction process and final agreement will be subject to the approval of the United States Bankruptcy Court for the Southern District of New York.  In addition, completion of the transaction remains subject to customary closing conditions and regulatory approvals. The auction process and transaction closing are expected to conclude within 3 to 4 months.

Keywords: Networking Business, Contact Center, Unified Communications, ARC Advisory Group.