Sat, Apr. 18, 8:04 PM
- Nokia (NYSE:NOK) and Alcatel-Lucent's (NYSE:ALU) planned merger could unravel Nokia's R&D partnership/reseller deal with Juniper (NYSE:JNPR). Juniper, which has partnered with Nokia on solutions that pair the former's routers with the latter's base stations and mobile core network gear, counts Alcatel as its second-biggest rival (after Cisco) in the carrier router market, and also squares off against the company in other markets such as carrier SDN software.
- Ruckus (NYSE:RKUS) is another Nokia partner that could be in the crosshairs: The company competes against Alcatel in carrier Wi-Fi hardware, and has a reseller deal with Nokia that goes back to 2012. The deal was recently expanded to cover Wi-Fi/4G small cell systems.
- At the same time, the merger has fueled speculation one or more rivals could respond with acquisitions of their own. A potential acquisition of Juniper by mobile infrastructure giant Ericsson (NASDAQ:ERIC) has especially been the subject of much talk.
- Ericsson is also viewed as a potential suitor for optical networking hardware vendors/fellow Alcatel rivals Ciena and Infinera. Ruckus has been seen as a potential M&A target for a long time. However, it currently competes against Ericsson, which bought Wi-Fi hardware vendor BelAir Networks in 2012.
- RF backhaul hardware maker DragonWave (NASDAQ:DRWI) could also lose business thanks to the merger; it bought Nokia's RF backhaul business in 2012. and maintains a reseller deal. However, H.C. Wainwright recently downplayed those concerns, arguing Alcatel's RF backhaul systems are expensive and clunky.
- Juniper and Ericsson report earnings on April 23, and Ruckus on April 30.
Wed, Feb. 25, 3:16 PM
- Bloomberg reports HP (HPQ -10.1%) is in talks to acquire enterprise Wi-Fi hardware/software provider Aruba Networks (ARUN +22.5%), and that a deal could be announced as soon as next week. Aruba has skyrocketed on the report, and has taken rival Ruckus (RKUS +4.7%) higher with it. Aruba's market cap is now around $2.5B.
- Aruba is the enterprise Wi-Fi market's #2 player - behind Cisco (NASDAQ:CSCO), which towers over the space - and HP is also in the top-5. IDC estimates Cisco, Aruba, Ruckus, and HP respectively had Q2 2014 enterprise Wi-Fi shares of 46.8%, 11.8%, 6.2%, and 4.5%.
- HP, whose shares have plunged today due to an FQ1 revenue miss and soft guidance, saw its total networking revenue drop 11% Y/Y in FQ1 - "execution issues" in the U.S. and China were blamed. The IT giant has suggested it's open to making enterprise acquisitions ahead of its PC/printing spinoff.
Oct. 18, 2013, 12:55 PM
- Reuters reports Motorola Solutions (MSI +0.1%) is thinking of selling its slumping enterprise Wi-Fi unit. One source cautions talks are in their early stages.
- Motorola's Wi-Fi division sales fell by a mid-single digit % Y/Y in Q2, and by 30% in Q1. By contrast, IDC estimates global enterprise Wi-Fi sales rose 14.8% during the quarter.
- Potential buyers include rivals Aruba (ARUN +1%), Ruckus (RKUS +0.1%), and Ubiquiti (UBNT +3%). Market leader Cisco could also make a bid, but with the company already having an estimated 58.4% Q2 share (per IDC), regulators might not be thrilled. Also, Cisco is in the midst of integrating Wi-Fi hardware/software vendor Meraki, which it bought for $1.2B.
- Motorola's total enterprise sales fell 12% Y/Y in Q2, if one excludes the impact of the Psion acquisition; the Wi-Fi unit accounted for 8% of 2012 enterprise sales, or $216.7M. Q3 results arrive on Wednesday.
RKUS vs. ETF Alternatives
Ruckus Wireless Inc provides carrier-class Wi-Fi solutions to service providers and enterprises to solve network capacity and coverage challenges. Its products include gateways, indoor and outdoor access points, and controller software platforms.
Other News & PR