The network solutions provider Brocade has completed its acquisition of Ruckus Wireless, which was announced in April 2016. With this, the wireless products of Ruckus got added to Brocade’s enterprise networking portfolio, strengthening Brocade’s presence in the broader service provider space.
“The combined company will be able to deliver superior focus and speed of innovation and best-in-class solutions spanning the full spectrum of networking,” said Lloyd Carney, Brocade CEO.
“Our combined world-class portfolio now provides customers with greater flexibility in meeting today’s infrastructure requirements, including high performance, flexible, secure access networks. We are thrilled to welcome the Ruckus team to Brocade and look forward to working together to help our customers transform their networks into an open platform for business innovation,” Carney said.
Under the terms of the agreement, Ruckus stockholders received $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus common stock. The transaction valued Ruckus at a price of $14.43 per common share, or approximately $1.5 billion. Net of estimated cash acquired, the transaction value is approximately $1.2 billion. The cash portion of the purchase price was funded through a combination of cash on hand and new bank term loan financing.
“Together, Ruckus and Brocade create a unique and exemplary leader in networking across the global market,” said Selina Lo, CEO, Ruckus Wireless Business Unit at Brocade.
“Both companies have pursued a similar vision for modern networks built on open systems, network virtualization and ubiquitous mobility. Our combined product portfolio offers numerous leverage points for continuous integration and innovation in the future. The Ruckus team is excited to join Brocade to drive our roadmap further and to jointly deliver innovative, value-added solutions that fulfill the wired and wireless needs of our customers,” Lo added.