$15 million transaction extends Extreme's offering of IP services to Layers 4-7

March 2, 2001

1 Min Read

SANTA CLARA, Calif. -- Extreme Networks, Inc. (Nasdaq: EXTR - news), a leader in broadband networking solutions, today announced that it has signed a definitive agreement to acquire WebStacks, Inc., a privately-held company developing data center technology to vastly increase website performance. With this move, Extreme Networks extends its offering of IP services to provide the robust Layer 4-7 switching solutions required for building today's high-performance content aware networks.

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 within the next 15 days 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


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