CommScope completes its acquisition of Arris
Written by: Sam Fenwick | Published:

CommScope has completed its acquisition of Arris International plc, the owner of Ruckus Networks. The deal was announced on 8 November and was valued at around $7.4 billion.

On the wireless side, the synergy between the two companies arises from the trend towards network convergence coupled with the way that CommScope has traditionally focused on technologies that use licensed spectrum, whereas Ruckus Networks' strengths are in licence-exempt technologies such as Wi-Fi. On the telco/broadband side, a CommScope company spokesperson said that CommScope’s passive network portfolio could with Arris’ active network offerings will allow the combined company to offer an end-to-end solution to its customers.

The combined company is now able to provide:

  • Converged small cell solutions for licensed and unlicensed wireless spectrum;
  • Complementary wired and wireless communications infrastructure;
  • Integrated broadband access;
  • Private network solutions for industrial, enterprises and public venues; and
  • Connected and smart home solutions.

In response to a question as to what will happen to the Ruckus brand, the spokesperson said that “On Day One we’re operating business-as-usual” and that while CommScope is the newly combined company, all of its company brands (CommScope, ARRIS and Ruckus, and their logos) will continue to be used in its marketing activities.”

"This is a major milestone in the evolution of these two great companies and a significant moment for our industry,” said Eddie Edwards, president and chief executive officer, CommScope. “With the completion of this exciting transaction, we are creating a new CommScope that will help shape communications connectivity and networks of the future with greater technology, solutions and employee talent. We are committed to building on our well-established track record in prior transactions of meeting or exceeding our synergy targets and generating significant value for shareholders.

“We are focused on ensuring CommScope, with the fully integrated ARRIS and Ruckus businesses, is at its best financially, operationally and competitively. We are confident in our ability to solidify our leadership positions in the markets we serve and capitalise on opportunities in new markets. I look forward to continuing to work closely with all of our employees, including our new team members from ARRIS, as we strive to create a growth-oriented, innovative company focused on leading the upcoming network transformations.”

“I believe this is a once-in-a-lifetime combination of two great companies that are poised to make a lasting impact on the communications industry and the customers we serve,” said Bruce McClelland, formerly chief executive officer of Arris and now chief operating officer at CommScope. “Together, we combine great employee talent and experience, an impressive record of innovation and industry firsts, and a sharp focus on creating a world-class customer experience. The entire ARRIS team and I are eager to get started and help make CommScope one of the top names in technology.”

CommScope will release its financial results for first quarter 2019 on 9 May. As the acquisition closed after the quarter ended, CommScope will issue financial results on a standalone basis for the first quarter, but intends to issue guidance for the second quarter and full-year 2019 on a combined basis.

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