ARRIS International plc ARRS has recently completed the previously announced acquisition of Ruckus Wireless and ICX Switch Business from Broadcom Limited AVGO .
The deal was announced in February for a cash of $800 million along with the additional cost of unvested employee stock awards following Broadcom's buyout of Brocade
in November, 2017.
ARRIS' acquisition is expected to be value accretive to its earnings in the first year. The closure of the deal has resulted in further strengthening of the company's already strong position pertaining to converged wired and wireless networking technologies, beyond the home space, including education, public venues, enterprises, hospitality and the MDU markets. The takeover places ARRIS for new growth phase, using the companies' combined technology assets to enable next-generation wireless and wired networks.
Notably, Dan Rabinovitsj, former COO of Ruckus Wireless, is the current President of ARRIS' Enterprise Networks business segment named Ruckus Networks. The newly formed Ruckus Networks unit will function under the Enterprise Networks division at ARRIS. The business will work on delivering innovative wireless networking and wired switching technology to cater to the evolving and emerging needs across a number of verticals.
This buyout is expected to increase ARRIS' existent workforce as around 1700 employees from Ruckus Wireless and ICX Switch Business are set to join the company.
ARRIS International PLC Price
ARRIS International PLC Price | ARRIS International PLC Quote
Zacks Rank & Other Key Picks
ARRIS carries a Zacks Rank #2 (Buy). Investors interested in the same space may also consider Arista Networks, Inc. ANET and TESSCO Technologies Incorporated TESS , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Arista Networks and TESSCO Technologies have surged more than 100% and 35%, respectively, in a year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ARRIS International PLC (ARRS): Free Stock Analysis Report TESSCO Technologies Incorporated (TESS): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research