With the rapidly evolving requirements of the digital transformation era, we are positioning ourselves to lead where technology is headed. "History shows that focused, pure-play companies often innovate faster, are more agile, and deliver better value to their customers. "This strategic combination will position us to expand our addressable market and technology leadership with Ruckus' fast-growing wireless LAN products, and supports our vision to deliver market-leading New IP solutions that enable the network to become a platform for innovation," said Lloyd Carney, chief executive officer of Brocade. These elements are important in Brocade's strategy to disrupt and enhance the way edge services are created and delivered. Brocade and Ruckus believe that the integration of Wi-Fi and the use of shared access or lightly licensed spectrum are critical to meeting the ever-growing demand for coverage, capacity, and consistency required for next-generation mobile services. Net of estimated cash acquired, the transaction value is approximately $1.2 billion.The cash portion of the purchase price will be funded through a combination of cash on hand and new bank term loan financing.įurther, the acquisition will strengthen Brocade's ability to pursue emerging market opportunities around 5G mobile services, Internet of Things (IoT), Smart Cities, OpenG tm technology for in-building wireless, and LTE/Wi-Fi convergence. Based on the closing price of Brocade's stock on April 1, 2016, the transaction values Ruckus at a price of $14.43 per common share, or approximately $1.5 billion, and may fluctuate until close. Under the terms of the agreement, Ruckus stockholders will receive $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus common stock. The Ruckus organization will be led by current Ruckus CEO, Selina Lo, and report directly to Brocade CEO, Lloyd Carney. Brocade expects the transaction to be accretive to its non-GAAP earnings by its first quarter of fiscal 2017.
It will also significantly strengthen Brocade's strategic presence in the broader service provider space, with Ruckus' market-leading Wi-Fi position. The acquisition will complement Brocade's enterprise networking portfolio, adding Ruckus' higher-growth, wireless products to Brocade's market-leading networking solutions. Transaction expected to be accretive to Brocade's non-GAAP earnings by Q1 FY17īrocade increases stock repurchase authorization by $800 millionīrocade ( NASDAQ: BRCD) and Ruckus Wireless ( NYSE: RKUS) today announced that Brocade has entered into a definitive agreement to acquire Ruckus Wireless, Inc. SAN JOSE, CA-(Marketwired - Apr 4, 2016) - Brocade ( NASDAQ: BRCD)Ĭombined company expected to be #1 in storage area networking, #1 in service provider Wi-Fi, #2 in data center networking, #3 in enterprise wireless LAN, and #3 in enterprise edge networking in the U.S.
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