Brocade To Acquire Ruckus Wireless In Cash And Stock Deal - Quick Facts

(RTTNews) - Brocade (BRCD) and Ruckus Wireless (RKUS) announced a definitive agreement, under which Brocade will acquire Ruckus Wireless, Inc. in a cash and stock transaction. Ruckus stockholders will receive $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus common stock. Brocade expects the transaction to be accretive to its non-GAAP earnings by its first quarter of fiscal 2017.

Based on the closing price of Brocade's stock on April 1, 2016, the deal values Ruckus at a price of $14.43 per common share, or approximately $1.5 billion. Net of estimated cash acquired, the transaction is valued at approximately $1.2 billion.

Brocade also announced its Board has increased the authorization to repurchase its common stock under existing stock repurchase program by $800 million, bringing the total remaining amount authorized under the program to approximately $1.7 billion. The company said the increase is intended to facilitate the repurchase of all shares issued in conjunction with the Ruckus acquisition.