ARRIS International and Broadcom Limited have jointly announced that they have entered into an agreement for ARRIS to acquire Brocade Communication Systems‘ Ruckus Wireless and ICX Switch Business for cash consideration of $800 million, in addition to the added cost of unvested employee stock awards, following the closing of Broadcom’s acquisition of Brocade. ARRIS expectrs the acquisition to be accretive to its Non-GAAP earnings per share in the first 12 months.
This portfolio will expand ARRIS’ leadership in converged wired and wireless networking technologies beyond the home into the education, public venue, enterprise, hospitality, and MDU segments. ARRIS plans to establish a dedicated business unit within the company focused on innovative wireless networking and wired switching technology to address evolving and emerging needs across a number of virtual markets. The business unit will be led by the current Ruckus COO, Dan Rabinovitsj.
“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.”
“We have a history of partnering with Ruckus and the talented employees that created this powerful brand and platform. We are excited to welcome about 1,600 new employees and an extensive network of enterprise channel partners to the ARRIS family,” added McClelland.
“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 Dan Rabinovitsj, Ruckus COO. “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.”
“We are pleased to announce this transaction with ARRIS, which will allow us to focus our energy on quickly integrating Brocade’s Fibre Channel SAN business once we close the Brocade acquisition,” stated Broadcom CEO Hock Tan.