Extreme swallows Zebra's WLAN biz for $55 million

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Network World has a good breakdown of the deal, including a quote from Gartner which says Zebra gear should be on the short list for customers in the retail and hospitality businesses (among others) as well as verticals with location requirements, which would seem to include stadiums.

The networking provider announced Wednesday that it will acquire Zebra Technologies' wireless LAN business unit for $55 million.

The buyout will help Extreme to penetrate new vertical markets such as retail, hospitality, transportation and logistics, expanding its reach across vertical markets.

With the purchase, Extreme will get Zebra's wireless LAN 802.11ac high-speed wireless access portfolio, which includes Zebra's WiNG wireless operating system, NSight advanced network troubleshooting package as well as a managed service suite that Extreme does not now offer, said Extreme President and CEO Ed Meyercord.

"Adding new wireless LAN solutions to our existing wireless LAN technology enables us to provide [customers] with a full portfolio of end-to-end, wired and wireless software-driven networking solutions", Extreme President and CEO Ed Meyercord wrote in a post on the company blog.

Zebra Technologies, after exiting from the WLAN business, will focus on delivering Enterprise Asset Intelligence solutions, in collaboration with partners, that give customers real-time visibility into their operations so they can make smarter decisions.

"Zebra partners will be offered the opportunity to become a part of a unified partner program under Extreme's award-winning Extreme Partner Network, which offers incentives that increase profitability and simplify the way channel partners do business". In January 2014, the National Football League named Extreme Networks its First Official Wi-Fi Solutions Provider and for Super Bowl 50 this past February, named it the Official Wi-Fi Analytics Provider.

Zebra will now focus on mobile computers, scanners and printers, RFID systems, and software and services for identifying, tracking and managing critical assets, people and transactions.

Terms of the TransactionThe transaction purchase price is $55 million. The transaction is subject to customary closing conditions, including certain regulatory approvals, and is expected to close in the fourth quarter of 2016 (which is the second quarter of fiscal 2017 for Extreme Networks). Extreme expects to file a Current Report on Form 8-K with the Securities and Exchange Commission later today providing further details regarding the terms of the transaction.