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2/23/2017 | 4:43:02 PM
Re: Very interesting acquisition!
If memory serves, Brocade bought Ruckus for the latter's 5G property. Now that Broadcom is going to take the former out, chances are they are going to have a clean slate.

Arris is facing a bit of uncertainty on the set top box front so any time it could pick up Ruckus plus ICX, it might be a good bet (note: perhaps msilbey has a typo, $1.2B instead of $1.2m :)!) 

Before its inversion with Pace, Arris has always been a growth by acquisition shop, so its Ruckus deal should not be so alarming

Probably Wall Street is focused on the next Q disappointment alone. Incidentally, Arris provides a >1 book-to-bill, so if true its business is not about to fall off the cliff.

2/23/2017 | 9:18:20 AM
Re: Very interesting acquisition!
Agreed on points 1 and 2. And Ruckus has a history with Arris/Motorola, so the culture shock will hopefully be mitigated.

On the last point, yes, $800 million is a lot of cash, but I note that Brocade bought Ruckus less than a year ago for $1.2 million. I don't know enough about the finances to understand the valuation, but on the surface it sounds like a good deal. Will dig to learn more.
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2/23/2017 | 7:29:13 AM
Very interesting acquisition!
A few points:

- Very interesting move by Arris - shows ambition and willingness to invest significantly in a converged future

- Some clarity for Ruckus - these folks have been batted around the park in the past year - they know at least (if all goes tro plan) where they will be come late H2 2017.

- I wonder of the stock took a double whammy hit from lower Q1 firecast and the size of the M&A agreement? It's hard to tell but I imagine that may have also added a bit of downwards pressure.


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