Extreme Networks, Inc. (Nasdaq: EXTR), a provider of broadband networking solutions, announced that it has signed a definitive agreement to acquire WebStacks, Inc., a privately-held company developing data center technology to increase website performance. With this move, Extreme Networks extends its offering of IP services to provide Layer 4-7 switching solutions required for building high-performance content aware networks.
The growing popularity of the Internet has generated a growing pressure on website and data center performance. Content-aware networking and server load balancing has become the cornerstone technology for ensuring performance and reliability for websites.
WebStacks, founded in 1999, is developing an approach to building Layer 4-7 content networking devices. The Dell'Oro Group estimates this market will exceed $3 billion by the year 2005.
Under the terms of the agreement with WebStacks, Extreme Networks will issue approximately three million shares of common stock and up to $15 million in cash in exchange for all outstanding shares of WebStacks. The transaction is expected to close in March, 2001, and will be accounted for under the purchase method of accounting. Extreme Networks expects to record a one-time charge for purchased in-process research and development expenses related to the acquisition upon its consummation.
Extreme Networks:
Extreme Networks, Inc. delivers a simplified approach for building networks based on its corporate vision of "Ethernet Everywhere" networks. For more information, visit www.extremenetworks.com.