& cplSiteName &
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
2/27/2017 | 11:06:37 AM
Competitive positioning
It's worth noting that Arris' traditional HFC competitors, Cisco and Casa Systems, both have made large investments in wireless capabilities targeted to MSOs. Could Arris have done this deal in order to keep up?
2/26/2017 | 10:45:13 PM
Ruckus Deal
This is hilarious. Why would anyone buy a company that they cannot afford to buy.

"On the other hand, Jeffries points out that the cost of the deal is still likely eight times what Ruckus will bring in annually in earnings before interest, tax, depreciation and amortization (EBITDA)."

This is business class 101 never spend more than you have.
2/26/2017 | 10:43:45 PM
Ruckus M&A
I am shocked that Ruckus is completing a M&A so soon when it just did one in 2013 and 2016 and they are still adjusting to the PACE acquisition. It doesn't seem to smart to buy another company when the plans and adjustments for PACE still haven't been resolved and stabilized.

This leads me to believe that customer service for Ruckus will be poor because there will be no standardization from the 3 M&A's.

2/26/2017 | 10:41:38 PM
Is Ruckus Right
@Mari Silbey, great article on Ruckus. Thanks for the writeup.
2/24/2017 | 2:46:58 PM
Great Write Up
Mari, a nice write up. Thanks

My take is there is more upside than downside.

First of all, as noted, Arris is no stranger to acquisition. In fact, it is how it gets to where it is now. 

Second, Brocade bought Ruckus and developed ICX precisely because its own SAN portfolio is aging. Incidentally, Q-Logic was bought by Cavium. No tech shop should simply sit on its hand, no matter how specialist one is, but industrial standard is evolving. It is better to disrupt than to be disrupted.

Third, $870M (including the add-on cost) is serviceable. In fact, S&P Rating just talks about it today and maintains its rating on Arris.

Finally, Brocade bought Ruckus for $1.2B and spent considerable resources on ICX, so Arris is in fact getting a great discount.

It really depends on whether Arris could keep the talents while consolidate operations. So there may be inducements. But if Arris could pull off a trans-atlantic merger, this one is less risker than what the Jefferies analyst has suggested

Featured Video
Upcoming Live Events
September 17-19, 2019, Dallas, Texas
October 1-2, 2019, New Orleans, Louisiana
October 10, 2019, New York, New York
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events