Story image

Brocade snaps up Ruckus in $1.2 billion deal

05 Apr 16

Brocade is acquiring Ruckus Wireless in a US$1.2 billion deal, to provide a strong foothold in the increasingly hot wireless market.

The deal continues a line of similar acquisitions by traditional networking vendors to expand their Wi-Fi footholds, with Cisco snapping up Meraki three years ago for $1.2 billion, and HP buying Aruba for $3 billion last year.

Lloyd Carney, Brocade chief executive, says the deal positions Brocade to expand its addressable market and technology leadership via 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’.

Brocade says as companies move to digitise their business, the underlying network architecture needs to support business agility.

“This New IP architecture enables the network to become a platform for innovation and for developing, delivering and securing new applications,” the networking vendor says.

“Wireless is a critical access technology and the combination of Brocade and Ruckus creates a new type of pure-play networking company, with solutions spanning from the heart of the data centre to the wireless network edge.”

“With the rapidly evolving requirements of the digital transformation era, we are positioning ourselves to lead where technology is headed,” Carney says. “We believe that combining our portfolios will provide significant benefits to our customers and will enable us to accelerate our growth and value creation.”

Selina Lo, Ruckus president and chief executive, says the combination of the two companies creates ‘an exciting new thought leader in networking’.

“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.”

The acquisition is expected to strengthen Brocade’s play around 5G mobile services, internet of things, smart cities, OpenG technology for in-building wireless and LTE/Wi-Fi convergence.

The deal, which is expected to close in Brocade’s fiscal 2016 third quarter, has been approved by both companies boards of directors.

MulteFire announces industrial IoT network specification
The specification aims to deliver robust wireless network capabilities for Industrial IoT and enterprises.
Google Cloud, Palo Alto Networks extend partnership
Google Cloud and Palo Alto Networks have extended their partnership to include more security features and customer support for all major public clouds.
DigiCert conquers Google's distrust of Symantec certs
“This could have been an extremely disruptive event to online commerce," comments DigiCert CEO John Merrill. 
Schneider Electric's bets for the 2019 data centre industry
From IT and telco merging to the renaissance of liquid cooling, here are the company's top predictions for the year ahead.
China to usurp Europe in becoming AI research world leader
A new study has found China is outpacing Europe and the US in terms of AI research output and growth.
Fujitsu’s WA data centre undergoing efficiency upgrade
Fujitsu's Malaga data centre in Perth has hit a four-star rating from National Australia Built Environment Rating System (NABERS).
Google says ‘circular economy’ needed for data centres
Google's Sustainability Officer believes major changes are critical in data centres to emulate the cyclical life of nature.
How to keep network infrastructure secure and available
Two OVH executives have weighed in on how network infrastructure and the challenges in that space will be evolving in the coming year.