NEW YORK (TheStreet) -- Shares of Ruckus Wireless (RKUS) are surging 29.8% to $12.98 on heavy trading volume Monday morning as Brocade Communications Systems (BRCD) will acquire the company in a deal valued at about $1.5 billion.

Under the terms of the agreement, Ruckus stockholders will receive $6.45 in cash and 0.75 shares of Brocade common stock for each Ruckus share, according to a company statement.

The deal values Ruckus at a price of $14.43 per share, or approximately $1.5 billion, based on Brocade's closing price on Friday.

Net of estimated cash acquired, the transaction is valued at about $1.2 billion, the statement said.

"The combination of our two companies will create an exciting new thought leader in networking and significant opportunities for our stakeholders to participate in the combined company's future growth potential," Ruckus President and CEO Selina Lo stated.

Sunnyvale, CA-based Ruckus is a supplier of wireless network equipment.

Brocade, which is headquartered in San Jose, CA, provides networking hardware, software and services.

Shares of Brocade are dipping 15.7% to $8.97 on heavy trading volume on Monday morning. About 8.16 million of the company's shares were traded by this morning compared to its average volume of 3.96 million shares per day.

Roughly 10.16 million of Ruckus' shares changed hands so far today vs. its average volume of 676,382 shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on Ruckus stock.

The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations.

As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: RKUS