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.