Ruckus Wireless Inc (NYSE: RKUS)
Ruckus Wireless is having an incredible day in the market today, leading the wireless sector with incredible gains. The gains we’re seeing are for a very good reason. It was recently announced that RKUS has been bought out. Today, we’ll talk about the details of the acquisition, how investors reacted to the news, and what we can expect to see from the stock moving forward. So, let’s get right to it…
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RKUS Will Be Acquired
As mentioned above, RKUS is having an incredible day in the market today after announcing that it has reached a deal to be acquired. According to the announcement made early this morning, RKUS will be acquired by Brocade Communications. In order to acquire Ruckus, Brocade will pay approximately $1.5 billion. On top of that, shareholders will get $6.45 in cash and 0.75 shares of Brocade’s common stock for each share of RKUS common stock owned.
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market, and nothing moves the needle quite like mergers and acquisitions. Even rumors of an acquisition can send a stock climbing into double digit gains. However, today’s announcement was no rumor, RKUS is indeed being acquired. So naturally, we’re seeing incredible movement on the value of the stock today. Currently (10:25), the stock is trading at $13.00 per share after a gain of $3.00 per share or 30.00% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly positive expectation with regard to returns on investments for RKUS stock holders at the moment. First and foremost, the acquisition offered comes with an incredible premium. On top of that, once the acquisition is final, Ruckus Wireless investors will own shares in Brocade Communications, a company that has a relatively solid history and will likely continue to see growth. All in all, things are looking good for RKUS investors.
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What Do You Think?
Where do you think RKUS is headed moving forward and why? Let us know your opinion in the comments below!
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