Brocade agreed to acquire Ruckus Wireless in a deal valued at approximately $1.5 billion, consisting of $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus common stock.
Ruckus' wireless products add to Brocade's enterprise portfolio and will also significantly strengthen Brocade's strategic presence in the broader service provider space. Ruckus has over $370 million in annual revenue and over 1,000 employees worldwide. Ruckus Wireless' current CEO, Selina Lo, will continue to lead this division, reporting to Brocade CEO, Lloyd Carney. Ruckus is based in Sunnyvale, California, not far from the Brocade headquarters.
"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," said Lloyd Carney.
"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," said Selina Lo. "We operate in adjacent segments of the larger networking market with a number of common customers for our complementary products, and have a successful track record of working together."
An investor presentation is on the Brocade website.
http://newsroom.brocade.com/
