Arris/Broadcom Buys Ruckus Wireless

Arris is upping its networking game. It agreed to acquire Brocade Communication Systems’ Ruckus Wireless and ICX Switch business for $800mln, plus the additional cost of unvested employee stock awards. The deal is contingent on the closing of Broadcom’s acquisition of Brocade, which was announced in November. Arris expects the acquisition to be accretive to its earnings in the first 12 months. The deal is expected to expand Arris’ presence in converged wired and wireless networking technologies beyond the home and into education, public venue, enterprise, hospitality and MDU segments. The vendor plans to create a dedicated business unit within the company focused on wireless networking and wired switching technology that will be led by Ruckus COO Dan Rabinovitsj. “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,” Arris’ new CEO Bruce McClellan said in a statement. As part of the deal, 1,600 Ruckus employees will join Arris. The closing of the transaction is subject to regulatory approvals in various jurisdictions and other customary closing conditions but does not require shareholder approval by either company. It’s expected to close about 1 month following the closing of Broadcom’s acquisition of Brocade, which should wrap by the end of July.