NEW YORK (TheStreet) -- Shares of Brocade Communications (BRCD) are higher by 1.11% to $8.68 on Friday morning, after the communications and networking company announced that it has closed its $1.2 billion acquisition of Ruckus Wireless.
The deal expands Brocade's portfolio of market-leading storage networking and IP networking solutions with the addition of high performance wireless hardware and software products.
"The combined company will be able to deliver superior focus and speed of innovation and best-in-class solutions spanning the full spectrum of networking," said Lloyd Carney, Brocade CEO. "Our combined world-class portfolio now provides customers with greater flexibility in meeting today's infrastructure requirements, including high performance, flexible, secure access networks," Brocade CEO Lloyd Carnet said in a statement announcing the completion of the deal.
Separately, TheStreet Ratings has set a "buy" rating and a score of B on Brocade stock. This is driven by a few notable strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels, impressive record of earnings per share growth and increase in net income. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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: BRCD