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Arris puts up $800m for Ruckus Wireless

Communications technology company Arris is in the final stages of acquiring Ruckus Wireless for $800 million (£641.5 million).

The deal will see Brocade’s Ruckus Wireless and ICX Switch business change hands for the cash sum plus the additional cost of unvested employee stock awards.

The move will see Arris, which specialises in the design and engineering of broadband networks, venture into the education, public venue, enterprise, hospitality, and MDU sectors.

Following the acquisition, Arris will set up a dedicated business unit within Ruckus, focussing on wireless networking and wired switching technology.

This new unit will be led by current Ruckus COO Dan Rabinovitsj, who described the acquisition deal as a ‘win-win’ for Ruckus Wireless.

Innovate and expand

Commenting on the acquisition, Mr Rabinovitsj said: “Joining Arris - a leader powering today’s digital world - will allow us to accelerate the pace of innovation and expand our industry-leading networking portfolio, leveraging Arris resources and scale.”

The deal is on track to be closed before August, and Arris expects the acquisition to be accretive to its Non-GAAP earnings per share within the first 12 months.

Browse our range of Ruckus products

Arris chief executive Bruce McClelland said purchasing Ruckus will significantly grow the Arris business, creating value for its customers, employees, shareholders and partners.

He commented: “We have a history of partnering with Ruckus and the talented employees that created this powerful brand and platform. We are excited to welcome 1,600 new employees and an extensive network of enterprise channel partners to the Arris family.”

Mr McClelland was optimistic about what lay ahead for the industry, saying: “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.”

Written by for Comms ExpressADNFCR-1186-ID-801832756-ADNFCR

Arris puts up $800m for Ruckus Wireless - Article Discussion

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