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Arris wants Ruckus Wireless and ICX Switch business, but there is a catch

The transaction is contingent on Broadcom Limited closing its acquisition of Brocade Communications Systems, Inc., previously announced on November 2, 2016.
Arris International plc, and Broadcom Limited have entered into an agreement for Arris to acquire Brocade Communication Systems Inc.'s Ruckus Wireless and ICX Switch business for a cash consideration of USD 800 million, plus the additional cost of unvested employee stock awards.

Arris plans to establish a dedicated business unit within the company focused on wireless networking and wired switching technology to address evolving and emerging needs across a number of vertical markets. The business unit will be led by 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."

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 and is expected to close approximately one month following the closing of Broadcom's acquisition of Brocade.

The transaction is contingent on Broadcom closing its acquisition of Brocade, previously announced on November 2, 2016 and approved by Brocade shareholders on January 26, 2017. Broadcom presently expects to close the Brocade acquisition in its third fiscal quarter ending July 30, 2017.

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March 25 2017 3:01 PM V8.0.2-1