ARRIS to Acquire Ruckus Wireless and ICX Switch Business

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Bruce McClelland, ARRIS CEO

In the shifting, converging worlds of cable, telco, and wireless, we’ve always been an expert partner to our customers. As we work together to enable the next era of connected experiences, we are beginning to see the lines blur; not just between wireless technologies, but between wired and wireless networking. Five years from now, every service provider will also be a wireless operator.

That’s why today we’re excited to announce that we’re planning to acquire Ruckus Wireless and ICX campus switching from Broadcom.

We’ve set an aggressive growth strategy for ARRIS that includes expanding our technology breadth and depth with a focus on wireless broadband. This strategy will also take us beyond the home – and into new, adjacent markets. The acquisition accomplishes all of these goals, expanding our focus into the enterprise networking and wireless spaces, as well as augmenting our portfolio of products serving our existing and emerging customers.

Ruckus is leading the industry in the development of an exciting new approach for delivering very high-bandwidth cellular service – areas that are of high interest to both mobile and fixed Service Providers.  Combining the strengths of ARRIS and Ruckus will allow us to be agile, innovative and evolve our services as those lines blur between wireline and wireless operators.

As you’ve seen from our Motorola and Pace acquisitions, we have a fantastic track record of making investments that significantly grow our business and create value for all of our stakeholders – customers, employees, shareholders and partners.

Through our existing collaborations with the Ruckus team, we are very familiar with the amazing talent and innovation that have created this world-class brand. We plan to introduce Ruckus as a dedicated business unit within ARRIS, led by current Ruckus COO and industry veteran, Dan Rabinovitsj. Under Dan’s exceptional leadership, the team’s focus will remain on technological innovation, channel and partner ecosystems and vertical market development.

We look forward to welcoming Ruckus to the ARRIS family – and are excited by the future strides we will take together – as ARRIS continues to power the digital world.

Forward-Looking Statements

This communication regarding the transaction contain forward-looking statements concerning the transaction, the expected benefits, and the timing of closing. Forward-looking statements generally may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “targets,” “forecasts,” “outlook,” “impact,” “potential,” “confidence,” “improve,” “optimistic,” “deliver,” “comfortable,” “trend” and “seeks,” or the negative of such terms or other variations on such terms or comparable terminology. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the possibility that proposed acquisition of Brocade by Broadcom will not be completed and the possibility that the proposed acquisition of the Ruckus Wireless broadband and ICX Switch business by ARRIS will not be completed, whether as a result of the failure to obtain necessary regulatory approvals, to satisfy any of the other conditions to the transactions or otherwise; adverse effects on the market price of ARRIS shares and on ARRIS’s operating results because of a failure to complete the acquisition; failure of ARRIS to realize the expected benefits of the acquisition; negative effects relating to the announcement of the possible acquisition or any further announcements relating to the acquisition or the consummation of the acquisition on the market price of ARRIS shares; significant transaction costs and/or unknown liabilities; customer reaction to the announcement of the proposed acquisition; possible litigation relating to the acquisition; general economic and business conditions that affect the combined companies following the consummation of the acquisition; commercial acceptance and use of the Shared Spectrum Small Cell market by ARRIS’s customers; changes in global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax laws or their interpretation or application, regulations, rates and policies; future business acquisitions or disposals; and competitive developments. These factors are not intended to be an all-encompassing list of risks and uncertainties. Additional information regarding these and other factors can be found in ARRIS’s reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2016. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. The factors described in the context of such forward-looking statements in this release could cause ARRIS’s plans with respect to the business acquired from Broadcom, ARRIS’s actual results, performance or achievements, industry results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct and persons reading this document are therefore cautioned not to place undue reliance on these forward-looking statements, which speak only as at the date hereof. ARRIS expressly disclaims any obligation to update or correct these forward-looking statements except as required by law.

Announcing ARRIS’s New R&D Center in Bangalore, India

Today, we opened a new, multi-million dollar R&D and Operations center in Bangalore, India, dedicated to innovation for our customers worldwide.

The Ulsoor, Bangalore site – which houses a state-of-the-art lab and testing facilities – becomes ARRIS’s largest global development center outside of the US. It’s an IP creation hub that unites world-class engineers from the former ARRIS and Pace sites in the region (following ARRIS’s January 2016 acquisition of Pace). Now, they can more easily collaborate on the technology to drive the next era of broadband and video experiences—from Gigabit Internet to 4K TV, and Wi-Fi.

Our Executive Chairman and Chairman of the Board of Directors, Bob Stanzione, inaugurated the facility with Kiran Gadi, Country Head and VP, Engineering for ARRIS India, in a ribbon-cutting ceremony this morning.

Take a look at our photos from the ceremony:

 

 

 

 

 

Allseen Alliance and OCF Merger will Benefit both Developers and Users

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by Charles Cheevers, CTO, CPE, ARRIS

In the world of IoT, there can be confusing options for protocols. Today’s announcement of the merger of OCF and the AllSeen Alliance marks a great leap forward in simplifying the options for both developers and consumers alike. With a single OCF solution that combines the best of IoTivity and AllJoyn – and the expert workforce behind them – there is now a rich open source option available for developers to build devices that will truly interoperate and work together.

This solution offers both a consistent and singular onboarding experience with the ability for developers to also add support of other relevant solutions – such as Thread, ZigBee and Bluetooth – through plug-ins. A rich feature set for both onboarding and security capability, coupled with a set of supported cloud protocols that range from residential, smart city and M2M industrial applications make the OCF option a compelling choice for developers and users. Now with the ability to create a single aggregation home hub point for connecting to the best-in-class smart devices, the home will be decluttered from multiple hubs for different proprietary solutions; this will provide a common application platform for the top-notch devices to continue to thrive.

The ARRIS IOT enabled TG346x class of Wireless AP and IoT Hub solutions will allow a single device to support both Wi-Fi®, 802.15.4 and BT devices using an IoTivity platform supporting Thread, ZigBee and BLE. This is the kind of simple and home-friendly ergonomic solution that users are looking for and can support through OCF/IoTivity platform onboarding multi-protocol device solutions – giving the user choice in end smart device through a single point of communication to the device and cloud.

Want to hear more? Join us at Broadband World Forum, next week in London when Ian Wheelock, ARRIS Engineering Fellow will present on “Leveraging current and future gateway devices to unify the disaggregated smart home dilemma” (Tuesday 18th October @ 16.45).

Our New Leadership Team

We recently completed our acquisition of Pace —positioning ARRIS as a global leader in our industry with an unmatched body of talent.

Today, we’d like to welcome the Pace leadership team to our ranks, where we’ll leverage their expertise to bring our vision of the future to new markets.

At the executive level, Bob Stanzione will continue on as Chairman and CEO of ARRIS, along with Dave Potts as EVP and CFO. Larry Margolis will lead integration of the combined organization as EVP of Corporate Strategy & Administration. Larry Robinson and Bruce McClelland will continue to serve as President of their respective business units, which will maintain their current structure: CPE and Network & Cloud and Global Services. Ron Coppock will lead our new, dedicated international sales organization and continue to lead marketing, as President of International Sales and Global Marketing. Tim O’Loughlin from Pace will bring his sales expertise and relationships to his new role as President, North American Sales. Jim Brennan will continue as SVP of Supply Chain and Quality, Patrick Macken as SVP, General Counsel and Secretary, and Vicki Brewster as SVP of Human Resources. Finally, Pace’s Phil Baldock will serve as ARRIS’s new SVP, CIO.

We expect many members of the Pace senior management team to take on leadership positions at ARRIS—a testament to Pace CEO Mike Pulli’s work in creating one of the industry’s leading talent organizations and one that matches ARRIS’s culture of success.

“The people of ARRIS represent the future of our company,” said Bob Stanzione. “Today, we have the industry’s leading talent under one roof. And in the coming months, we’ll begin to leverage the full potential of our combined expertise—broadening our global footprint, tapping into new markets, catalyzing innovation, and transforming entertainment and communications for millions of people around the world.”

Video Interview with ARRIS CEO Bob Stanzione: Pace Acquisition

As you’ve probably heard, ARRIS just acquired Pace.

It’s a big deal. It’s going to transform our industry and affect the way that millions of people watch TV and connect to the Internet and to each other.

We thought the news might leave you with some questions, so we went straight to Bob Stanzione, Chairman and CEO of ARRIS, for answers to the biggest ones on people’s minds.

Check out our video interview with Bob, below, and hear why we acquired Pace, what it means for ARRIS today, and how that’s changing the way our company is preparing for the future.

Another step in the eco-friendly direction

We’ve said it before and it is worth saying it again — when it comes to energy efficiency, less iscea_logo more. As a global leader in products responsible for broadband and TV entertainment delivery into homes everywhere, we also never lose sight of how we can play a significant role in energy conservation.

That’s why we’re thrilled to join forces with the Consumer Electronics Association (CEA) and the National Cable & Telecommunications Association (NCTA) to improve energy efficiency of small network equipment by 10-20 percent. ARRIS broadband modems, routers and gateways will be core to this commitment.

And this agreement builds into our previously stated focus on minimizing energy use. We’ve long been committed to minimizing our global carbon footprint and energy use through environmentally responsible business operations. And of course, we’ve shown how we factor this way of thinking into our product innovations. Back in 2013, we voluntarily agreed to reduce the energy usage of our set-top devices along with today’s partners – CEA and NCTA – as well as the U.S. Energy Department, the Natural Resources Defense Council (NRDC), and other industry associations and energy advocates.

Today is yet another step in our commitment to minimize our products’ impact on the environment. And we have no plans to slow down!

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