Daily News: September 19, 2016

SVB Supports Extreme Networks’ Zebra Wireless LAN Buy

Silicon Valley Bank served as sole administrative agent and a joint lead arranger for $139.91 million in debt financing to support, among other things, Extreme Networks acquisition of Zebra Technology’s wireless LAN for a reported $55 million.

JPMorgan Chase acted as a joint lead arranger and Bank of America acted as sole syndication agent for the amended and restated senior secured credit facilities. Cadence Bank acted as documentation agent.

Extreme will acquire Zebra’s customers, personnel and technology assets under terms of the deal. The buyout will help Extreme penetrate new vertical markets such as retail, hospitality, transportation and logistics, expanding its reach across vertical markets.

Ed Meyercord, president and CEO of Extreme Networks, said, “WLAN is the fastest growing segment in the networking industry. 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.”

The all-cash transaction is expected to close in Q4/2016, subject to customary closing conditions including regulatory approvals.

Zebra will continue to offer end-to-end solutions to customers, with Anders Gustafsson, CEO of Zebra Technologies, saying that the deal will allow the company to focus on its enterprise asset intelligence solutions.