Extreme Networks Buys Infovista's Ipanema SD-WAN Business for $73M
August 10, 2021
Networks plans to acquire Ipanema, the SD-WAN division of Infovista. The
acquisition will expand Extreme's market-leading ExtremeCloudTM portfolio,
offering new cloud-managed SD-WAN and security solutions required to power the
Ed Meyercord, President and CEO, Extreme Networks said, "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."
Nabil Bukhari, Chief Technology Officer, Extreme Networks added, "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."
According to a June 2021 report from 650 Group, the SASE (Secure Access Service Edge) market is expected to grow from a $2.9 billion market in 2020 to roughly $10 billion by 2025, at a five-year CAGR of 30 percent.
Extreme expects that Infovista will enter into a definitive purchase agreement
with Extreme for purchase and sale of €60 million (or approximately $73 million)
in an all-cash deal, subject to customary adjustments. Ipanema is a privately
held company, currently part of Infovista and majority owned by Private Equity
firm Apax Partners with a minority stake owned by Thoma Bravo. The acquisition
is expected to close in October 2021, pending works counsel consultations.
Moelis & Company LLC is serving as a strategic financial advisor for Extreme
Extreme expects the acquisition of Ipanema to be neutral to Non-GAAP EPS in FY22 (July 1, 2021 - June 30, 2022) and accretive to non-GAAP EPS in FY23 (July 1, 2022 – June 30, 2023).