Brocade has entered into an agreement to acquire Ruckus Wireless in its bid to add the later's higher-growth, wireless products to its market-leading networking solutions.The transaction value is estimated to be approximately $1.2 billion. The deal is also expected to significantly strengthen Brocade's strategic presence in the broader service provider space, with Ruckus' market-leading Wi-Fi position.
The Ruckus organization will be led by current Ruckus CEO, Selina Lo, reporting directly to Brocade CEO, Lloyd Carney.
According to Brocade, the acquisition will also strengthen Brocade's ability to pursue emerging market opportunities around 5G mobile services, Internet of Things (IoT), Smart Cities, OpenGtm technology for in-building wireless, and LTE/Wi-Fi convergence.
After Aruba went to HP for $3bn, another WiFi hardware maker Ruckus has been acquired, for $1.2 billion. By Brocade. https://t.co/1DBkZfESjX
— Om Malik (@om) April 4, 2016
Lloyd Carney, chief executive officer of Brocade
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.
Selina Lo, president and CEO of Ruckus
The combination of our two companies will create an exciting new thought leader in networking and significant opportunities for our stakeholders to participate in the combined company's future growth potential.
