Extreme Networks on Wednesday announced it's acquiring Wi-Fi router maker Aerohive Networks for $272 million. The deal will expand Extreme's portfolio in cloud-managed Wi-Fi and network access control (NAC), complementing its current on-prem Wi-Fi and NAC portfolio.
Founded in 2006, Aerohive has approximately 30,000 cloud wireless LAN customers in verticals including education, health care, state and local government and retail. It was among the first companies to offer controller-less wi-fi and cloud network management.
Aerohive also recently rolled out a trio of Wi-Fi 6 access points, Extreme noted -- along with the industry's first pluggable access point.
The deal should help Extreme expand its footprint in key verticals, the company said, thanks to its more comprehensive networking portfolio. And with the addition of new SD-WAN capabilities from Aerohive, Extreme says it's expanding its total addressable market by $1 billion.
Aerohive also brings to the table a strong subscription-based business. The deal should expand Extreme's mix of revenues from subscription-recurring revenue to approximately 30 percent.
The acquisition is expected to close during Extreme's first quarter of fiscal year 2020.