Filing Flows › Extreme Networks (EXTR) › Takeover & LBO
Is Extreme Networks (EXTR) a takeover target?
A leveraged buyout at today's price plus 30% ($29.39 a share) would return about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 5.0% of companies with its figures were bought within a year (0.99× the average). Latest signal (2026-11-06): EXCLUSIVE: Networking firm Extreme Networks explores sale, sources say.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $29.39 | today's $22.61 plus 30% |
| × shares | 134.7 million | |
| = Equity value | $4.0B | |
| + Debt refinanced | $165M | |
| − Cash | $245M | |
| = Enterprise value | $3.9B | 42.2× EBITDA of $92.0M |
| Fees | $77.6M | 2% of the price |
| New debt | $506M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.5B | 87% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.4B | $99.4M | $38.7M | $13.9M | $492M |
| Year 2 | $1.5B | $106M | $37.6M | $19.6M | $472M |
| Year 3 | $1.6B | $112M | $36.1M | $25.5M | $447M |
| Year 4 | $1.7B | $117M | $34.2M | $31.5M | $415M |
| Year 5 | $1.7B | $120M | $31.8M | $37.4M | $378M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 32.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $3.9B | |
| − Debt left | $378M | |
| = Buyer's equity | $3.5B | |
| Money multiple | 1.01× | on $3.5B put in |
| Buyer's yearly return (IRR) | 0.3% |
Price against return
What the buyer makes at other premiums over today's $22.61.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $24.87 | 4.3% |
| 20% | $27.13 | 2.2% |
| 30% | $29.39 | 0.3% |
| 40% | $31.65 | −1.5% |
| 50% | $33.91 | −3.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.3B | |
| EBITDA, last 12 months | $92.0M | 7.0% of revenue |
| Depreciation and amortization | $17.5M | |
| Capital spending | $27.8M | |
| Debt | $165M | |
| Cash | $245M | |
| Share price | $22.61 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 15% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Extreme Networks would cost about $29.39 a share, $4.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $25.32 | $3.4B |
| Median | 30% | $29.39 | $4.0B |
| High end (a quarter paid more) | 31% | $29.62 | $4.0B |
The odds, from history
Historically 5.0% of companies with its figures were bought within a year (0.99× the average). Its figures put it in decile 6 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Rumors and deal signals
- 2026-11-06 · news · EXCLUSIVE: Networking firm Extreme Networks explores sale, sources say
- 2026-11-06 · news · Extreme Networks jumps 15% on report company is exploring a sale
- 2026-11-06 · news · Extreme Networks exploring sale after buyout interest, Reuters reports
- 2026-11-06 · news · Extreme Networks Weighs A Sale After Buyer Interest
Extreme Networks' latest quarter
Extreme Networks, Q1 FY27: revenue $341M (+10% year over year), operating margin 6.8%, net earnings $16.0M, operating cash flow $45.4M. The chart follows the revenue to costs, profit and cash.
Questions
Is Extreme Networks being acquired?
The latest signal on file is from 2026-11-06: EXCLUSIVE: Networking firm Extreme Networks explores sale, sources say. A headline is not a deal; Filing Flows lists the news, 8-K filings and 13D filings about a sale.
Could private equity buy Extreme Networks?
A leveraged buyout at today's price plus 30% ($29.39 a share) would return about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Extreme Networks cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Extreme Networks would cost about $29.39 a share, $4.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.