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Enterasys Networks

From Alfawiki
Enterasys Networks, Inc.
Company typePublic (until 2005), Private (from 2005)
IndustryNetworking hardware and software
PredecessorCabletron Systems (spin-off)
FoundedMarch 2000; 26 years ago (2000-03)
Defunct2013 (2013)
FateAcquired by Extreme Networks
SuccessorExtreme Networks
Headquarters
Salem
,
United States
Key people
Mike Fabiaschi (CEO 2006–2008), Mark Stone (interim CEO 2008), Chris Crowell (CEO and president post-2008)
ProductsRouters, switches, wireless access points and controllers, network management and security software including intrusion prevention systems, network access control, security information management tools
OwnerGores Group and Tennenbaum Capital Partners (from 2005)
ParentExtreme Networks (from 2013)

Enterasys Networks, Inc. was a U.S.-based enterprise specializing in networking solutions, including routers, switches, and wireless access points and controllers compliant with IEEE 802.11 standards. Established in March 2000 as a spin-off from Cabletron Systems, Enterasys also developed software for network management and security, offering products such as intrusion prevention systems, network access control, and security information management tools. The company’s headquarters were located in Salem, New Hampshire.

History

Enterasys made its public market debut on August 6, 2001, listing on the New York Stock Exchange under the ticker ETS. Initially, the company posted a $12.9 million profit in its first quarter after separation; however, earnings were later restated in 2002 due to improper revenue recognition practices, which led to several consecutive quarters of losses.

In October 2003, Enterasys resolved investigations by the U.S. Securities and Exchange Commission along with shareholder lawsuits through a settlement amounting to $50.4 million. A former executive admitted guilt to charges of fraud in 2004, and by 2006, multiple executives had been sentenced to prison relating to these offenses.

In November 2005, private equity firms Gores Group and Tennenbaum Capital Partners took Enterasys private in a transaction valued at $386 million. Mike Fabiaschi was named CEO in April 2006 with the objective of rebuilding customer confidence and enhancing operational outcomes. By 2008, the company set a target to grow its revenue to $1 billion and was actively pursuing strategic acquisitions.

On July 29, 2008, Gores Group collaborated with Siemens to acquire Siemens Enterprise Communications (SEN), obtaining a controlling 51% interest in a deal worth $550 million. This acquisition enabled the integration of Enterasys’ networking assets with SEN’s telephony and wireless product lines.

Following the unexpected passing of Fabiaschi in September 2008, Mark Stone served as interim CEO until Chris Crowell assumed the roles of CEO and president. Legal proceedings concerning previous fraud allegations persisted into 2009.

Extreme Networks announced on September 12, 2013, that it would acquire Enterasys for an estimated $180 million in cash.

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