Extreme Networks, Inc., (Nasdaq: EXTR) said Tuesday it will buy privately held Optranet, a developer of broadband IP services for about 2 million of its shares in a move to extend its "ethernet everywhere" strategy.
Shares in the broadband networking solutions company closed down 3.25 to 39.13 Friday, making the deal worth about $78 million.
Under the terms of deal, about 2 million shares of Extreme Networks common stock will be exchanged for all outstanding shares of Optranet. The transaction is expected to close on Jan. 31, and will be accounted for under the purchase method.
Extreme Networks said it expects to record a one-time charge upon the deal's consummation.
Optranet leverages a simple Ethernet service provisioning model to give service providers increased profitability with higher performance, the company said.