Arris’ rumored acquisition of Brocade’s IP networking business became a partial reality today when the cable-equipment vendor announced that it will buy the Ruckus Wireless and ICX Switch business for $800 million in cash.
Ruckus COO Dan Rabinovitsj would lead the business as a separate unit within Arris. He would be joined by an additional 1,600 Ruckus employees.
In announcing the $5.9 billion acquisition of Brocade in November, Broadcom said it would divest Brocade’s networking business (including Ruckus and the ICX switches) because it competes with some of Broadcom’s top clients, including Cisco. Much of that networking portfolio, such as the MLX line of routers, is not included in the Arris deal.
On a conference call today, Arris officials said that Brocade’s ICX business took a hit in revenue after Broadcom announced its plans to divest the business, but Arris expects it to regain traction with this deal.
Arris will inherit Brocade’s range of access points (APs), controllers, and campus switching products along with the associated enterprise and service provider customer bases.
The deal also means Arris would start selling wireless LAN equipment to its own customer base of cable providers.
“As we work together to enable the next era of connected experiences, we are beginning to see the lines blur; not just between wireless technologies, but between wired and wireless networking,” writes Arris CEO Bruce McClelland in a blog posting today. “Five years from now, every service provider will also be a wireless operator.”