Broadcom Finalizes Brocade Purchase, Arris-Ruckus Deal Next


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**Editor’s Note: Please click here for a recap of the biggest channel-impacting merger and acquisition news from September and October.**

Broadcom‘s $5.9 billion acquisition of network vendor Brocade Communications Systems is now complete, setting the stage for Arris to wrap its $800 million purchase of Brocade’s Ruckus Wireless and ICX Switch business from Broadcom.

Brocade will operate as an indirect subsidiary of Broadcom and will be led by Jack Rondoni, previously Brocade’s senior vice president of storage networking. Rondoni brings more than 20 years of experience in storage, networking and technology.

“We are pleased to complete this transaction, which strengthens Broadcom’s position as a leading provider of enterprise storage and networking solutions and enables us to better serve our OEM customers,” said Hock Tan, Broadcom’s president and CEO. “Broadcom has a track record of successfully integrating and growing companies we acquire, enabling us to offer customers a leading portfolio of best-in-class franchises across a diverse set of technologies. We intend to invest in and grow the Brocade business to further enhance its capabilities in mission-critical storage networking.”

Broadcom is a semiconductor device supplier to the wired, wireless, enterprise storage and industrial end markets.

“We are very excited to join the Broadcom team and provide compelling benefits for customers and new opportunities for Brocade’s employees,” Rondoni said. “Broadcom provides us with the scale, resources and complementary capabilities to accelerate growth, execute on our strategic initiatives and extend our market leadership in storage area networking. We share a common culture of innovation and execution, and we look forward to the exciting new growth opportunities we will have as part of the Broadcom team.”

Arris’ agreement to acquire Ruckus Wireless and ICX Switch business was contingent on Broadcom closing its Brocade acquisition. Arris expects to complete the Ruckus acquisition promptly following a review by the Committee on Foreign Investment in the United States. The committee’s investigation period ends on Nov. 30.

“We look forward to soon welcoming the Ruckus team into the Arris family,” said Jeanne Russo, Arris’ global strategic communications lead. “Ruckus’ exceptional expertise and portfolio will provide us immediate diversification into the enterprise market and build on Arris’ leadership position in networking and entertainment technology.”

Last month, Extreme Networks completed its $55 million acquisition of Brocade’s data center networking business.

Broadcom also is pursuing Qualcomm, but the company has rejected its $130 billion bid.

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