Brocade, American network hardware maker, announced today it has agreed to acquire Ruckus Wireless, a global supplier of wireless systems for the mobile internet infrastructure market.
The deal is valued at approximately $1.5 billion (£1.05bn).
According to the press release following the announcement, the deal will be made partially in cash, and partially in shares, with Ruckus stockholders getting $6.45 in cash and 0.75 shares of Brocade common stock for each share they have.
"This strategic combination will position us to expand our addressable market and technology leadership with Ruckus’ fast-growing wireless LAN products, and supports our vision to deliver market-leading New IP solutions that enable the network to become a platform for innovation,” said Lloyd Carney, chief executive officer of Brocade.
“History shows that focused, pure-play companies often innovate faster, are more agile, and deliver better value to their customers. With the rapidly evolving requirements of the digital transformation era, we are positioning ourselves to lead where technology is headed. We believe that combining our portfolios will provide significant benefits to our customers and will enable us to accelerate our growth and value creation."
The deal is expected to be closed in Brocade's third fiscal quarter of 2016.
Brocade's Board of Directors also increased the authorisation to repurchase its common stock under its existing program by additional $800 million (£560m), bringing the total remaining amount to some $1.7bn.
The company is expecting the repurchase to be completed within six months of the closing of the acquisition, but the timing and amounts will be determined by Brocade, depending on the common stock price.