Extreme Networks Announces Intent to Acquire Infovista's Ipanema SD-WAN Business
The way people work, connect, and interact has become more fluid and highly distributed, further extending the edge of the network and in turn creating the Infinite Enterprise. Extreme's solutions power the Infinite Enterprise by leveraging a scalable cloud infrastructure to extend the connectivity required to power consumer-centric experiences anywhere and everywhere.
Ipanema's solution automatically and dynamically adjusts application traffic flows based on real-time network conditions, providing increased performance and improved quality of experience, even under diverse conditions across various types of cloud-managed WAN connectivity. Extreme plans to leverage these capabilities to establish an infinitely distributed and secure solution within the ExtremeCloud portfolio – progressing the company's position as one of the world's most advanced cloud platforms. This will add more flexibility, capability, and security when connecting locations, applications, and devices, enabling Extreme to provide the best possible experience to customers and their consumers, wherever they are in their journey toward the Infinite Enterprise.
The addition of Ipanema will establish a second technology center of excellence for Extreme in
Industry Analyst Views of SD-WAN and SASE
- According to a
May 2021report from IDC, the SD-WAN market grew 18.5% in 2020 to $3 billionworldwide, with the Europe, Middle East, and Africa(EMEA) region accounting for 27% of the market. IDC forecasts the SD-WAN market to grow 18.9% per year through 2025, with a similar growth outlook for the EMEA region. The report cites that SD-WAN remains one of the fastest growing segments of the network infrastructure market.
- According to a
June 2021report from 650 Group, the SASE (Secure Access Service Edge) market is expected to grow from a $2.9 billionmarket in 2020 to roughly $10 billionby 2025, at a five-year CAGR of 30 percent.
- "By acquiring Ipanema, Extreme extends its market leadership position in cloud with features that will help to reduce complexity for customers when it comes to operating and managing their increasingly distributed networks. Tapping into the fast-growing and developing market segments of cloud-managed SD-WAN, and, in the future SASE, accelerates our topline growth potential and expands our opportunity to grow recurring revenue with additional SaaS applications. Further, we'll extend our go-to-market and R&D footprint in
Europe, where Ipanema is an established player. We're excited to welcome the Ipanema team to Extreme, where together we'll drive towards our next phase of accelerating growth." - Ed Meyercord, President and CEO, Extreme Networks
- "Ipanema expands the ExtremeCloud portfolio by providing new cloud-managed SD-WAN connectivity and security capabilities, accelerating Extreme's ability to meet the needs created by the Infinite Enterprise. In isolation, SD-WAN technology barely scratches the surface of its potential, and we believe Ipanema's technology will play a critical role in helping us continue provide fast, secure, and superior consumer experiences. By building upon Ipanema's innovation and performance, we'll be able to provide customers more flexible and secure cloud-managed solutions to connect locations, people, applications, services, and devices with even greater speed and finesse." –
Nabil Bukhari, Chief Technology Officer, Extreme Networks
Extreme expects that Infovista will enter into a definitive purchase agreement with Extreme for purchase and sale of €60 million (or approximately
Extreme expects the acquisition of Ipanema to be neutral to Non-GAAP EPS in FY22 (
1 IDC, Worldwide SD-WAN Infrastructure Market Shares, 2020: Growth Remains Strong as Market Evolutions Continue, Doc # US47628721,
2 650 Group Secure Access Service Edge (SASE), Quarterly Market and Long-Term Forecast Report, 1Q21,
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" including, without limitation, statements concerning plans, expectations, underlying assumptions and timing relating to Extreme's planned acquisition of Ipanema, and other statements, which are not statements of historical facts. Forward-looking statements may be identified by the use of words like "expect," "estimate," "will," "may," or expressions of similar meaning. Forward-looking statements reflect management's evaluation of information currently available and are based on the Extreme's current expectations and assumptions about its planned acquisition of Ipanema. Specific factors that could cause future results to differ from those expressed by the forward-looking statements include, but are not limited to, risks related to the occurrence of any event, change or other circumstances that could give rise to the termination of or failure to complete Extreme's planned acquisition of Ipanema or the agreements and transactions contemplated thereby; the failure of Extreme to meet the conditions to closing of its planned acquisition of Ipanema, including those conditions related to works council; costs related to the proposed acquisition of Ipanema; the ability of the post-acquisition company to meet its financial and strategic goals; Extreme's ability to successfully integrate the acquired businesses; the ongoing impact of the COVID-19 pandemic and those factors discussed in the Company's Annual Report on Form 10-K for the year ended
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