Extreme Networks today announced its deal with Zebra Technologies to acquire Zebra’s wireless LAN (WLAN) business for $55 million in cash.
The strategy of Extreme Networks is to combine Zebra’s WLAN technologies and retail, transportation and logistics, and hospitality customers with its wired and wireless capabilities. The combined WLAN business will be the third largest provider in its combined target markets and fourth largest by market share.
This acquisition will expand Extreme Networks’ wired and wireless software-driven networking solutions and complements its vertical market focus.
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.
The acquisition positions Extreme Networks as a leader across the hospitality, education, healthcare, manufacturing and state and local government markets and extends the company into new verticals such as retail, transportation and logistics, and broader hospitality.
Extreme Networks will invest in the acquired WLAN technology which will enhance the technology company’s software-driven solutions portfolio. ExtremeWireless, ExtremeManagement, ExtremeControl, ExtremeAnalytics, ExtremeSwitching and ExtremeCloud are some of the offerings from Extreme Networks.
Through the acquisition, Extreme Networks will add in-house Managed Services’ capabilities to its existing offerings.
Extreme Networks expects to generate over $115 million in annualized revenue from the acquired WLAN assets from Zebra.
Zebra in a statement said it will continue to offer end-to-end solution – from mobile computers and scanners to specialty printers, RFID, software and services – for identifying, tracking and managing critical assets, people and transactions.
WLAN and key vendors
Market research agency IDC recently said he combined consumer and enterprise worldwide wireless local area network (WLAN) market segments increased 4.5 percent year over year in the first quarter of 2016, while declining 10.7 percent on a sequential basis.
The enterprise segment of WLAN grew 8.6 percent year over year in Q1 2016. Consumer WLAN market revenue was flat on a year-over-year basis.
Cisco has a WLAN market share of 45.2 percent. Aruba-HPE has a market share of 15.8 percent. Ruckus accounted for 7.7 percent of the overall market. Ubiquiti accounted for 4.3 percent of the overall market.