Extreme Networks (EXTR) Could Unlock Huge Upside on Ruckus Networks Acqisition

Extreme Networks, Inc. (NASDAQ:EXTR) is one of the 10 Cheap Stocks with Huge Upside Potential. On January 13, reports emerged that the company is considering a possible acquisition of Ruckus Networks from CommScope Holding Company, according to people familiar with the discussions. Extreme Networks has been evaluating a potential cash-and-stock transaction that could value the Wi-Fi and networking equipment provider at more than $1 billion. However, a final decision has not yet been reached. The company could ultimately decide not to move forward with the deal. Upon request, representatives from both Extreme Networks and CommScope Holding declined to comment on the matter.

A transaction worth more than $1 billion would be significant for the stock, which closed trading on January 13 with a market value of about $2.1 billion. In the meantime, CommScope shares surged 2.9% to $19.04, valuing the company at roughly $4.2 billion. If completed, the deal would significantly improve the company’s portfolio of products and services. It will support large customers such as financial services firms and government agencies in managing networks.

CommScope acquired Ruckus Networks in 2019 as part of its acquisition of Arris International. The firm has recently been selling assets to reduce its debt, including a $10.5 billion sale of its broadband and cable equipment unit to Amphenol.

Extreme Networks, Inc. (NASDAQ:EXTR) operates as a developer, marketer, and seller of network infrastructure equipment and related software. It provides ExtremeCloud IQ, ExtremeCloud IQ-Site Engine, and ExtremeCloud IQ Essentials. The company serves mid-market and enterprise customers, as well as service providers across several industries.

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Disclosure: None. This article is originally published at Insider Monkey.