HIVE - Extreme Networks: Acquisition Of Aerohive Doesn't Change The Story
With its intention of acquiring Aerohive Networks (HIVE), Extreme Networks (EXTR) is again active with M&A. Over the past years, the network vendor acquired a couple of businesses, and the results have been disappointing so far.
Today's announcement is a typical acquisition scenario. The goal is to gain scale and realize synergies. But the cash transaction will also increase leverage, and management will have one more business to integrate.
Before getting into the valuation of Extreme Networks post-acquisition, let's assess the synergies. I'll also discuss the fairness of the proposed