ARRIS International plc, (NASDAQ: ARRS) and Broadcom Limited (NASDAQ: AVGO) have agreed for ARRIS to acquire Brocade Communication Systems Inc.´s Ruckus Wireless and ICX Switch business for cash consideration of USD 800m, plus the additional cost of unvested employee stock awards, following the closing of Broadcom´s acquisition of Brocade, the company said.
ARRIS expects the acquisition to be accretive to its Non-GAAP earnings per share in the first 12 months.
This portfolio will expand ARRIS´s leadership in converged wired and wireless networking technologies beyond the home into the education, public venue, enterprise, hospitality, and MDU segments. ARRIS plans to establish a dedicated business unit within the company focused on innovative 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.
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, is not subject to any financing conditions, and is presently 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.
LionTree Advisors is acting as lead financial advisor, and Troutman Sanders LLP is acting as counsel to ARRIS on this transaction. Barclays is acting as lead financial advisor, and Latham & Watkins LLP is acting as counsel to Broadcom on this transaction.
Broadcom Limited is a leading designer, developer and global supplier of a broad range of analog and digital semiconductor connectivity solutions. Broadcom Limited´s extensive product portfolio serves four primary end markets: wired infrastructure, wireless communications, enterprise storage and industrial & other. It is co-headquartered in Singapore and San Jose, Calif.
ARRIS International plc. is a world leader in entertainment and communications technology. The people of ARRIS collaborate with the world´s top service providers, content providers, and retailers to advance the state of the industry and pioneer tomorrow´s connected world.