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Subsequent Event
3 Months Ended
Sep. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
Acquisition of Enterasys Networks
On October 31, 2013, the Company consummated the previously announced acquisition from Enterprise Networks Holdings Inc., of all of the issued and outstanding capital stock of Enterasys Networks, Inc. (“Enterasys”), a privately held provider of wired and wireless network infrastructure and security solutions based in Salem, New Hampshire. The purchase price paid by the Company was $180 million in cash, consisting of cash on hand and borrowings under a new credit facility. We have agreed to reimburse the sellers on a dollar-for-dollar basis for any cash remaining in Enterasys at the closing. The purchase price is subject to customary post-closing purchase price adjustments. The purchase of Enterasys has been accounted for as a business combination under the acquisition method. Enterasys is now a wholly-owned subsidiary of the Company and the results of operations of Enterasys (beginning with the closing date of the acquisition) and the estimated fair value of assets acquired will be included in the Company’s consolidated financial statements beginning in the second quarter of fiscal 2014.
Senior Secured Credit Agreement
On October 31, 2013, the Company entered into a $125 million senior secured credit facilities agreement consisting of a $65 million term loan facility (“Term loan”) and a revolving credit facility of $60 million (“Revolving facility”).  Both facilities mature on October 31, 2018.  The proceeds of the Term loan were used to pay a portion of the purchase price in the acquisition of all of the issued and outstanding capital stock of Enterasys. The company drew $35 million of the $60 million Revolving facility to pay fees and expenses incurred in connection with the acquisition and to provide ongoing working capital and for other general corporate purposes. Borrowings under the Term loan and Revolving facility bear interest, at the Company’s election, at a rate per annum equal to an agreed to applicable margin plus (a) the prime rate in effect on such day or (b) Libor. The credit facility contains standard events of default and financial covenants, including those that require the Company to maintain certain leverage and quick and fixed charge coverage ratios.