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Arris-Brocade Deal Chatter Heats Up

Arris could announce $1B buy of Brocade’s networking equipment today, Reuters says 2/22/2017 1:05 PM Eastern

Arris is close to clinching a $1 billion acquisition of Brocade Communication Systems’ networking equipment business, Reuters reported Tuesday.

Arris, which is scheduled to release Q4 2016 results this afternoon, declined to comment on the report, which stressed that a deal could still crumble.

Reuters reported in January that Arris was in talks to acquire Brocade’s networking equipment business, which could give Arris’s wireless product strategy a big boost as that tech category becomes increasingly important to an Arris customer base that includes Comcast and Charter Communications.

RELATED: Arris Bidding for Brocade’s Networking Unit: Report

At last month’s Needham Growth Conference, Arris CFO Dave Potts acknowledged that Arris could eye “adjacent markets,” citing wireless among the examples.

RELATED: Charter Looking at Wireless Play Too

Brocade acquired WiFi company Ruckus Wireless in 2016, then Broadcom put up $5.5 billion for Brocade later in the year. Broadcom also announced an intention to sell off Brocade’s IP networking business, which includes wireless and campus networking products, data center switching and routing and software networking solutions. Reuters reported earlier that Arris isn’t interested in buying Brocade’s data center, switching and software assets.

Ruckus and Arris
inked a global reselling deal in 2011, and continues to hawk several Ruckus products, including network controllers/gateways, analytics software, and WiFi access points.

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