In November I wrote
about the announcement from Broadcom to acquire Brocade and its intent to divest its IP Networking assets, including the Network Edge business unit, made up of Ruckus Wireless and the ICX Campus Switching products. Today I can share the exciting news that the Network Edge business is expected to be acquired by ARRIS
—a world leader in digital entertainment and communications technology—and will operate as a dedicated business unit in the company. Broadcom has stated that it expects this will take place approximately 30 days after the close of the acquisition of Brocade by Broadcom.
I know that the past few months of uncertainty have been challenging for our loyal partners and customers, but I believe the future with ARRIS offers us not only stability and investment, but also a genuine opportunity for growth. ARRIS views this acquisition as transformational, offering diversification into the enterprise market with access to the impressive Ruckus and Brocade channel partners. Additionally, this transaction is expected to accelerate growth in the service provider segment worldwide, where both ARRIS and Ruckus hold market share leadership positions.
From my perspective, we are creating the potential for a soup-to-nuts solution provider for networking, entertainment and communications, spanning the territory from the connected home to the enterprise and public-facing venues like smart cities.
For Ruckus, the most important thing about this journey forward is that we are emerging as a business transformed and strengthened since the acquisition by Brocade:
- With the complete integration of the ICX networking team and products into the business, we have so much more to offer our partners and customers, providing for a comprehensive set of wired and wireless solutions and services.
- Our team has been strengthened with the combined DNA of our origins, which is made up of some of the brightest and best in the industry. We will be making a louder Ruckus than ever before.
- We move forward with a continued commitment to the best value we can offer to a range of market verticals spanning hospitality, service providers, education, smart cities, sport venues and SMBs alike.
- And of course, we hold a never diminishing, heartfelt devotion to our partners and customers. We believe in our joint success; I want to thank our channel partners, distributors, strategic and alliance partners and customers for the loyalty you have shown us through this time of uncertainty. We will not forget it and hope to continue to earn it!
Onward and upward! #RuckusRising
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This communication, and any documents to which Brocade refers you in this communication, contains not only historical information, but also forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Brocade's current expectations or beliefs concerning future events, including but not limited to the expected completion and timing of the proposed transaction, expected benefits and costs of the proposed transaction, management plans relating to the proposed transaction, strategies and objectives for future operations and other information relating to the proposed transaction. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," "forecasts," "should," "estimates," "contemplate," "future," "goal," "potential," "predict," "project," "projection," "target," "seek," "may," "will," "could," "should," "would," "assuming" and similar expressions are intended to identify forward-looking statements. You should read any such forward-looking statements carefully, as they involve a number of risks, uncertainties and assumptions that may cause actual results to differ significantly from those projected or contemplated in any such forward-looking statement. Those risks, uncertainties and assumptions include, (i) the risk that the proposed transaction may not be completed in a timely manner or at all, which may adversely affect Brocade's business and the price of the common stock of Brocade, (ii) the failure to satisfy any of the conditions to the consummation of the proposed transaction, including the receipt of certain governmental and regulatory approvals, (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement, (iv) the effect of the announcement or pendency of the proposed transaction on Brocade's business relationships, operating results and business generally, (v) risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed transaction, (vi) risks related to diverting management's attention from Brocade's ongoing business operations, (vii) the outcome of any legal proceedings that have been or may be instituted against us related to the merger agreement or the proposed transaction; (viii) unexpected costs, charges or expenses resulting from the proposed transaction, and (ix) other risks described in our filings with the SEC, including our Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. Forward-looking statements speak only as of the date of this communication or the date of any document incorporated by reference in this document. Except as required by applicable law or regulation, Brocade does not assume any obligation to update any such forward-looking statements whether as the result of new developments or otherwise.