Broadcom announced an agreement to sell Ruckus Wireless and the Brocade ICX switch business to Arris for USD 800 million cash. The sale comes less than a year after Brocade acquired Ruckus for nearly twice the price. Broadcom said it wants to focus on quickly integrating Brocade's Fibre Channel SAN business once it completes the Brocade acquisition.
The deal gives Arris a new line of business serving the enterprise market. The company plans to set up dedicated business unit for wireless networking and wired switching technology, led by the current Ruckus COO, Dan Rabinovitsj. The takeover is expected to add to Arris' adjusted EPS in the first 12 months after closing and add around 1,600 new employees. The purchase price also includes any unvested employee stock options.
The sale is expected to close within a month after Broadcom completes the Brocade takeover. Brocade shareholders approved the takeover in January, and Broadcom expects to close the deal by end-July.
