Business

Arris slaps down US$800m to buy Brocade's wireless bits

Broadcom waves farewell to what used to be Ruckus and the ICX switch business

By Richard Chirgwin

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Arris Technologies will buy Ruckus Wireless from Broadcom, for US$800m.

Ruckus came to Broadcom when it acquired Brocade in November 2016. Selling the company seems a little odd as wireless was one of the few bright spots in Brocade's final earnings call as an independent entity. In Q2 2016, Ruckus added 51 per cent to Brocade's wireless revenue, taking that segment to US$256 million.

As well as the wireless business, Arris Technology is also picking up Broadcom's ICX campus switching line. The US$800 million in cash plus unvested employee stock awards transaction is, naturally enough, contingent on Broadcom completing its transaction. That's expected in the quarter ending July 31, 2017.

Ruckus COO Dan Rabinovitsj will head up a new business unit at Arris, and around 1,600 staff will get new business cards as part of the deal.

The ICX switches that go with the deal are a big part of what Brocade pitched at “next-generation” IP networks.

Arris's announcement notes that the acquisition gives it a footprint in enterprise and service provider markets.

Broadcom will turn its attention into digesting the Brocade Fibre Channel storage networking business. ®

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