The Network Hub

Apr 4 2016   11:11AM GMT

Brocade to buy Ruckus in $1.2B deal

Chuck Moozakis Chuck Moozakis Profile: Chuck Moozakis

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Brocade said it has struck an agreement to purchase Ruckus Wireless Inc. in a stock and cash deal valued at $1.2 billion.

The transaction, expected to close later this year, will add Ruckus’ line of wireless products to Brocade’s existing enterprise networking portfolio and help let Brocade compete more aggressively with vendors like Hewlett Packard Enterprise and Fortinet, both of which acquired wireless suppliers in the past year.

HPE, in its purchase of Aruba Networks; and Fortinet, which bought Meru Networks, are eager to offer customers a complete line of networking and wireless products as more enterprises evaluate the role Wi-Fi and the wireless LAN will play in their organizations. Juniper Networks and Dell, meantime, have partnered with Aerohive Networks to resell its line of wireless gear to complement their networking products. Market leader Cisco and Extreme Networks Inc. also offer a blended line of networking and wireless products.

Brocade, in a statement, said the combined company will rank No. 1 in storage area networking and service provider Wi-Fi, and No. 3 in enterprise Wi-Fi and enterprise edge networking in the United States, European, Middle East and African markets.

Brocade also said the acquisition will also let it pursue new markets such as those emerging around 5G mobile services, Internet of Things and municipal services.

“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, chief executive officer of Brocade, in a statement.

Selina Lo, president and CEO of Ruckus, will remain with the company and report to Carney.

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