Extreme Networks aims to enhance SD-WAN offer with Ipanema acquisition

Cloud-driven networking company announces intent to establish second technology centre of excellence in Europe through acquisition of the SD-WAN division of Infovista

Extreme Networks has revealed that it intends to acquire Ipanematech SAS, with the aim of expanding its advanced networking portfolio and offering new cloud-managed software-defined wide are area networking (SD-WAN) and security solutions.

The company, known as Ipanema, is the SD-WAN division of Infovista, and its solutions are designed to adjust 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. Ipanema’s solutions are currently deployed in more than 100,000 sites and serve more than 400 customers.

Outing the deal’s rationale, Extreme noted that 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 what it calls the Infinite Enterprise. The firm said its solutions power the Infinite Enterprise by using a scalable cloud infrastructure to extend the connectivity required to power consumer-centric experiences anywhere and everywhere.

In the proposed deal, Extreme expects that Infovista will enter into a definitive purchase agreement valued at €60m (approximately $73m) in an all-cash deal, subject to customary adjustments. The acquisition is expected to close in October 2021, pending works counsel consultations.

Once the deal has been closed, Extreme plans to use Ipanema’s capabilities to establish what it said will be an “infinitely distributed and secure” solution in its ExtremeCloud portfolio. This will add more flexibility, capability and security when connecting locations, applications and devices, enabling Extreme to provide what it said will be the best possible experience to customers and their consumers, wherever they are in their journey towards the Infinite Enterprise.

Extreme said having the Ipanema portfolio would accelerate and expand its portfolio for Infinite Enterprise by adding SD-WAN technology, which allows for infinite distribution of connectivity across the Infinite Enterprise; integrations that would enable distributed security across the Infinite Enterprise; application intelligence that would enhance data and analytics capabilities. The company adds that it could better help customers reduce the complexity of operating and managing their increasingly distributed networks.

The addition of Ipanema will also establish a second technology centre of excellence for Extreme in Europe and deepen the company’s European customer presence. Ipanema has established partnerships with managed services providers and systems integrators across Europe to help customers implement, manage, and scale its cloud-driven SD-WAN installations.

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Since the outbreak of Covid, SD-WAN has been one of the hottest areas of IT as firms pivoted almost overnight to at home and distributed working. According to a May 2021 report from IDC, the SD-WAN market grew 18.5% in 2020 to $3bn worldwide, with the Europe, Middle East and Africa (EMEA) region accounting for 27% of the market.

IDC forecasts the SD-WAN market will 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. In addition, a June 2021 report from the 650 Group said the associated secure access service edge (SASE) market is expected to grow from a $2.9bn market in 2020 to roughly $10bn by 2025, at a five-year CAGR of 30%.

“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,” said Ed Meyercord, president and CEO of Extreme Networks.

“Tapping into the fast-growing and developing market segments of cloud-managed SD-WAN, and, in the future, SASE, accelerates our top line 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.”

Read more on Software-defined networking (SDN)

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