SAN JOSE, Calif. -- Extreme Networks, Inc. (Nasdaq: EXTR), a cloud-driven networking company, today announced it has completed the acquisition of Ipanema, the cloud-native, enterprise SD-WAN division of Infovista. The acquisition expands Extreme's market-leading ExtremeCloud™ portfolio, offering new cloud-managed SD-WAN and security software solutions required to power the Infinite Enterprise.

Extreme will augment its ExtremeCloud portfolio with Ipanema's SD-WAN capabilities, adding more flexibility, capability, and security when connecting locations, applications, and devices. This extends Extreme's leadership position in cloud and accelerates the company's goal of bringing distributed connectivity, security, and cloud capabilities to customers.

The acquisition establishes a second technology center of excellence for Extreme in Europe and deepens the company's customer presence in that region. Ipanema has more than 400 customers and its solutions are deployed across more than 100,000 sites. Extreme plans to leverage Ipanema's existing relationships with leading MSPs and XSPs as part of its go-to-market strategy across EMEA.    

Industry Analyst Data on Cloud Networking

• A recent report from 650 Group1 found that cloud-managed services is the fastest growing segment in networking, growing five percent quarter over quarter. The report found that Extreme Networks is currently outpacing the market with 26 percent growth, increasing its market share to 13 percent, overall.

Executive Quotes

• "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. 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." - Ed Meyercord, President and CEO, Extreme Networks
   
• "The Ipanema acquisition provides us with a framework to build out SASE features and 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. 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." – Nabil Bukhari, Chief Technology Officer, Extreme Networks
   
• "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." – Kristian Thyregod, Senior Vice President of Strategy and Market Development, Extreme Networks (formerly President of Global Enterprise at Ipanema)

Transaction Details
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.

Financial Implications
Extreme continues to expect the acquisition of Ipanema to be neutral to Non-GAAP EPS in FY22 and accretive to non-GAAP EPS in FY23. The company will provide additional information when it reports Fiscal Q1 earnings.