Extreme Networks Buying Zebra WLAN Unit for $55 Million

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in July-August 2016.**

Extreme Networks is making a big play in the wireless LAN (WLAN) space with a major acquisition.

The networking provider announced Wednesday that it will acquire Zebra Technologies‘ wireless LAN business unit for $55 million. The deal is expected to close in the fourth quarter, giving Extreme “customers, personnel and technology assets” from Zebra.

Extreme Networks CEO Ed Meyercord said the move will make his company a top three player in the enterprise WLAN sector.

“WLAN is the fastest growing segment in the networking industry,” he said. “Our heritage of delivering innovative and pioneering technology is reinforced with today’s announcement, underscoring our commitment to providing customers worldwide with unified visibility and control across their wired and wireless networks.”

Resellers in the Extreme Partner Network program will have access to the resulting mobility services, and sales chief Bob Gault said Zebra partners can now broaden their portfolio.

“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. Zebra partners will also be offered access to a program designed to enable and reward channel partners through new solution-selling, new customer acquisition and wireless specialization rebates in addition to deal registration programs and training,” Gault told us.

Extreme Networks, which calls itself a “channel-first” company, said it will add in-house managed services capabilities as a result of the deal.{ad}

Zebra CEO Andrew Gustafsson said his former WLAN business will mesh well within the networking company.

“This transaction enables us to increase our focus on delivering the best enterprise asset intelligence solutions, in collaboration with our partners, that give our customers real-time visibility into their operations so they can make smarter decisions,” he said. “We continually evaluate our business to ensure we are focusing on the areas which generate the strongest growth and highest return profiles, and today’s announcement exemplifies that commitment to our shareholders.”

The announcement noted that the acquisition will have “immaterial impact” on Zebra’s overall margins.