Aerohive Networks to Be Acquired by Extreme Networks

On June 26, 2019, Extreme Network, a software-driven networking company headquartered in San Jose, California, and Aerohive Networks, a pioneer in cloud-managed networking, announced that they have entered into a definitive agreement under which Extreme will acquire all of the outstanding shares of common stock of Aerohive at a price of $4.45 per share in cash, representing an aggregate purchase price of approximately $272 million. Accounting for Aerohive's net cash balance of $62 million at the end of March, the deal is equivalent to an enterprise value of $210 million.

The acquisition is subject to customary conditions, including the tender of the majority of the outstanding shares of Aerohive's common stock and regulatory approvals in the U.S. and Germany. The acquisition is expected to close during Extreme's first quarter of the fiscal year 2020. WSGR is representing Aerohive in the transaction.

The acquisition of Milpitas, California-based Aerohive will add critical cloud management and edge capabilities to Extreme's portfolio of end-to-end, edge to cloud networking solutions. It will provide a strong subscription revenue stream and strengthen Extreme's position in wireless LAN at a critical technology transition to Wi-Fi 6. Extreme expects the acquisition to be accretive to non-GAAP earnings per share starting in fiscal year 2020.

"This acquisition by Extreme is a major milestone for Aerohive. The role that cloud-managed technology plays in modern enterprises is impossible to overstate–it is where digital transformation is won and lost," said David Flynn, president and CEO of Aerohive. "Aerohive's expertise and excellence in cloud management and edge technology, combined with Extreme's extensive solutions portfolio and continued investment in software and AI for automation, gives our customers the most advanced digital experiences in the market. Together we will push networking into a new era—making infrastructure smarter, more autonomous, and the driver of business value."

The WSGR team representing Aerohive in the transaction includes:

M&A and Corporate:
Mark Baudler
Rob Ishii
Rich Mullen
Lillian Jenks
David Lee
Eric Chang
Ryan Cooper

Credit and Finance:
John Mao
Oscar Loui

Technology Transactions:
John McGaraghan
Kelly Camp

Data and Privacy:
Matt Staples
Daniel Chen

Tax
Myra Sutanto Shen

Employee Benefits and Compensation:
Scott McCall
Jaqueline Tokuda

Employment and Labor:
Briza Sanchez
Nedim Novakovic

Antitrust:
Ben Labow
Chris Williams
Lindsey Edwards

Securities Litigation:
Keith Eggleton
Rod Strickland

Patent Litigation:
Ryan Smith

For more information, please see Extreme Network's press release.