ARRIS to buy Ruckus Wireless in $800m deal
Cash deal will see Ruckus and Broadcom's ICX Switch Business transfer to new technology division at ARRIS
ARRIS International and Broadcom have a struck a deal that will see ARRIS acquire Brocade Communication’s wireless arms, Ruckus and ICX Switch, for $800 million in cash.
Broadcom has owned Ruckus since it bought Brocade in November, but it will now be integrated into ARRIS’ technology division, along with Broadcom’s ICX switching arm.
The deal will rely on the completion of the Broadcom/Brocade deal, which was approved by shareholders in January and is expected to close in the fiscal quarter ending 30 July.
"We are building upon our successful history of making investments that significantly grow our business and create value for our customers, employees, shareholders and partners," said Bruce McClelland, ARRIS CEO.
"Driven by ever-growing demand for high-speed, reliable, and effortless connectivity, service providers and enterprises will continually invest in their wired and wireless networks. The next five years will see exciting changes as every service provider will become a wireless operator of some fashion. Enterprises and venues will upgrade their broadband networks to provide new innovative value-added services and faster, more seamless internet access."
Should the deal be approved by regulators, ARRIS said it will establish a dedicated business unit which will focus on wireless networking and wired switching. This unit, which will be led by current Ruckus COO Dan Rabinovitsj, will target evolving and emerging vertical markets, the company said.
"ARRIS is a leader powering today's digital world, and this combination signifies a win-win for Ruckus Wireless and ICX switching employees, partners and customers," said Rabinovitsj.
"Joining the ARRIS team will allow us to accelerate the pace of innovation and expand our industry-leading networking portfolio, leveraging ARRIS resources and scale."