Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
On May 27, Brocade Communications Systems, Inc. (NASDAQ: BRCD) announced that it had completed the acquisition of Ruckus Wireless Inc (NYSE: RKUS).
Citi’s Stanley Kovler maintained a Neutral rating on the company, with a price target of $8.50.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Deal Price
Brocade Communications paid $6.45 in cash and 0.75 Brocade shares for each share of Ruckus Wireless. The total value of the deal was $12.90, with an EV of $1.06 billion.
“Ruckus adds a complementary WLAN platform to Brocade’s campus switches, and could drive sales synergies 6-12 months after close coming from the enterprise, federal, and public markets,” Kovler mentioned.
Accretion
The analyst pointed out that while the deal was not “transformative,” it would offset some of the incremental weakness being witnessed by Brocade Communications in SAN and IP Networking, including Routing.
Based on the accretion guidance for FY17, provided earlier by Brocade Communications, Kovler expects Ruckus Wireless to add $0.10 to the former company’s standalone EPS of $0.93, bringing the total pro-forma EPS for FY17 to $1.04.
“We assumed limited sales synergies for Brocade’s campus switching business from the addition of RKUS WLAN and virtually no cost synergies between the two companies, both of which could theoretically provide upside once management is able to provide more detailed FY17 guidance,” Kovler stated.
Accordingly, the FY16 and FY17 standalone EPS estimates have been raised.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.