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Subsequent Event | 3 Months Ended
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Sep. 30, 2017
Subsequent Events [Abstract] |
Subsequent Event | 14.Subsequent Event On October 27, 2017 (the “Brocade Closing Date”), the Company completed its acquisition of Brocade Communication Systems, Inc.’s (“Brocade”) switching, routing and analytics business (“Brocade SRA”), that had been announced on October 3, 2017. Under the terms and subject to the conditions of the Brocade Asset Purchase Agreement (“Brocade Purchase Agreement”), the Company acquired customers, employees, technology and other assets of Brocade SRA, as well as assumed certain contracts and other liabilities of Brocade SRA, for an upfront cash closing payment equal to $23.0 million, plus a deferred payment equal to $20.0 million to be paid $1 million per quarter for 20 quarters following the Brocade Closing Date, plus quarterly earn out payments equal to 50% of profits of Brocade SRA, with certain deductions per the terms of the Brocade Purchase Agreement for the five-year period commencing at the end of our first full fiscal quarter following the Brocade Closing Date. The Company is still evaluating the estimated consideration from the earn out provision. In conjunction with the acquisition, Extreme paid a fee of $25.0 million to Broadcom, Inc. in October 2017, for the right to acquire the Brocade SRA business. The acquisition will be accounted for using the acquisition method of accounting whereby the acquired assets and liabilities of Brocade SRA will be recorded at their respective fair values and added to those of the Company including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net assets. Results of operations of Brocade SRA will be included in the Company’s operations beginning with the Brocade Closing Date, As of the date of filing this Form 10-Q, the initial purchase price allocation has not been prepared as there has not been sufficient time to complete the related activities. On October 26, 2017, the Company entered into the Third Amendment to the Credit Facility (the “Third Amendment”). Among other things, the Third Amendment (i) amends the negative covenant governing dispositions to increase the general dispositions basket for the fiscal year of the Company ending June 30, 2018, and (ii) amends certain definitions and provisions to update certain references to the Brocade Purchase Agreement (as defined above). On the Brocade Closing Date to partially fund the acquisition of the Brocade SRA acquisition, the Company drew $20.0 million on the Term Loan.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -URI http://asc.fasb.org/topic&trid=2122774 + Details
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