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ARRIS (ARRS) Closes Ruckus Wireless Buyout From Broadcom

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ARRIS International plc has recently completed the previously announced acquisition of Ruckus Wireless and ICX Switch Business from Broadcom Limited (AVGO - Free Report) .

The deal was announced in February for a cash of $800 million along with the additional cost of unvested employee stock awards following Broadcom’s buyout of Brocade in November, 2017.  

ARRIS’ acquisition is expected to be value accretive to its earnings in the first year. The closure of the deal has resulted in further strengthening of the company’s already strong position pertaining to converged wired and wireless networking technologies, beyond the home space, including education, public venues, enterprises, hospitality and the MDU markets.  The takeover places ARRIS for new growth phase, using the companies’ combined technology assets to enable next-generation wireless and wired networks.

Notably, Dan Rabinovitsj, former COO of Ruckus Wireless, is the current President of ARRIS’ Enterprise Networks business segment named Ruckus Networks. The newly formed Ruckus Networks unit will function under the Enterprise Networks division at ARRIS. The business will work on delivering innovative wireless networking and wired switching technology to cater to the evolving and emerging needs across a number of verticals.

This buyout is expected to increase ARRIS’ existent workforce as around 1700 employees from Ruckus Wireless and ICX Switch Business are set to join the company.

Zacks Rank & Other Key Picks

ARRIS carries a Zacks Rank #2 (Buy). Investors interested in the same space may also consider Arista Networks, Inc. (ANET - Free Report) and TESSCO Technologies Incorporated , each sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Arista Networks and TESSCO Technologies have surged more than 100% and 35%, respectively, in a year.

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