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Arris and Broadcom jointly announced 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, plus the additional cost of unvested employee stock awards, following the closing of Broadcom’s acquisition of Brocade. Arris says in a statement that the acquisition will extend its offerings in converged wired and wireless networking technologies beyond the home into the education, public venue, enterprise, hospitality, and MDU segments. The company says it plans to establish a dedicated business unit within the company focused on wireless networking and wired switching technology, which will be headed up by current Ruckus COO Dan Rabinovitsj. “The next five years will see exciting changes as every service provider will become a wireless operator of some fashion,” Arris CEO Bruce McClelland comments. “Enterprises and venues will upgrade their broadband networks to provide new innovative value-added services and faster, more seamless internet access.” McClelland also points out that Arris has a previous history of partnering with Ruckus, and it aims to bring about 1,600 new employees and an extensive network of enterprise channel partners into the Arris fold after the acquisition. The transaction is contingent on Broadcom closing its acquisition of Brocade, previously announced last November. Broadcom expects to close that acquisition in its third fiscal quarter ending July 30, 2017. |
