Broadcom to buy Brocade for $5.9bn

November 3, 2016

Broadcom to buy Brocade for $5.9bn

By John Dixon in News Byte Tag acquisition, Broadcom, Brocade, datacenter, Fiber, fiberchannel, finance, foundry, Ruckus, switch, vyatta

In an interesting spin in the future of Brocade Unfortunately, we could not get stock quote BRCD this time., it is being brought by Broadcom AVGO 630,12 +19,96 +3,27% for $5.9bn.

Broadcom will divest itself of the IP networking business that Brocade has. This comprises the Foundry networks business that was acquired in 2008, the Ruckus wireless business, and the various software elements of the business, from acquisitions like Vyatta.

Broadcom will get a lot of the IP that Brocade has acquired, as well as the fiber-channel switch business. The deal, if it closes at the price agreed will provide a 47% premium on the Brocade share price.

Broadcom’s press release is here. Brocade has their press-release here.

John Dixon

John Dixon is the Principal Consultant of thirteen-ten nanometre networks Ltd, based in Wiltshire, United Kingdom. He has a wide range of experience, (including, but not limited to) operating, designing and optimizing systems and networks for customers from global to domestic in scale. He has worked with many international brands to implement both data centres and wide-area networks across a range of industries. He is currently supporting a major SD-WAN vendor on the implementation of an environment supporting a major global fast-food chain.

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