January 25, 2001, 12:05 PM — (REUTERS) -- Telecommunications equipment maker Extreme Networks Inc. said on Tuesday that it is buying Optranet, a developer of high-speed Internet protocol services, in an all-stock deal valued at slightly less than $80 million.
Santa Clara, Calif.-based Extreme Networks said it will exchange 2 million of its common shares for all of Optranet's outstanding stock in a transaction it expects to close on Jan. 31.
At Extreme Networks' closing price of $39-1/8 on the Nasdaq on Friday, the deal is worth $78.25 million.
Extreme Network shares in the past year have traded between $21-3/16 to $128-7/8.
The company said it expects to post a one-time charge for research and development costs as a result of the acquisition, but did not specify how much the charge would be.
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