Extreme Networks to Buy Optranet

Publish date:

Shares of

Extreme Networks

(EXTR) - Get Report

tumbled this morning after the telecommunications equipment maker said it was buying privately held


, a developer of broadband Internet protocol services.

Extreme Networks said it would exchange about 2 million shares of its common stock for all outstanding shares of Optranet. At Friday's closing price of $39.13 on the


, the deal is worth about $78.25 million.

Shares of Santa Clara, Calif.-based Extreme lately fell $7.75, or 19.8%, to $31.38 in morning trading.

The company expects the transaction, which will close on Jan. 31, to result in a one-time charge for research and development costs. Extreme Networks did not specify how much the charge would be.