back to article Broadcom snaps up Brocade for $5.9bn

As rumoured storage network switch, Ethernet switch and wireless vendor Brocade is being bought by Broadcom for $5.9bn in an all-cash transaction. The price is for $12.75 per share, valued at approximately $5.5bn, plus $0.4bn of net debt. The cash will come from new debt financing and cash available on Broadcom's balance sheet …

  1. Nate Amsden

    here's an idea

    Spin out the IP business and call it something like Foundry Networks.

    I was thinking there would be trouble for broadcom if they bought brocade given so many companies OEM broadcom for their switches etc. Good to see they realized that too.

  2. Blotto Silver badge
    Paris Hilton

    Wtf

    So brocade could have just sold part of itself to Broadcom instead?

    1. Joshua-Graham

      Re: Wtf

      Brocade wouldn't have sold unless the whole business was on the table. Brocade stated that they weren't interested in selling until Broadcom made an offer. Aside from that, Broadcom is in a better spot than Brocade to find a buyer for the IP business as they have relationships with EVERY network vendor already. I'd be willing to bet that Broadcom wouldn't have agreed to buy the whole business if they didn't already have a few buyers already lined up. Why take a $2-3 billion risk if you don't already have good ideas around how you are going to make that sale?

  3. nijam Silver badge

    Broadcom must be really hopeful that the rumoured incipient demise of FC is *only* a rumour.

  4. localzuk Silver badge

    Lenovo

    I reckon Lenovo would be a prime candidate to buy the IP business.

    They already sell Brocade OEM gear, and don't have their own Wifi system. I reckon it'd be a good fit, and it wouldn't make me fearful for the future of Ruckus (who we use for our wifi here).

  5. Anonymous Coward
    Anonymous Coward

    What about Cavium's FC HBA business?

    With Broadcom owning two ends of the wire (switch - Brocade to HBA - Emulex), what happens to Cavium's (QLogic) HBA business? An end-to-end performance, functionality and price advantage would be created that Cavium just couldn't compete against. I guess this escaped anti-trust scrutiny because Cisco still exists in this market, but with a much smaller market share. I clearly see this degrading the value of Cavium's recent purchase of QLogic.

  6. fredesmite

    umm... why not sell FC portion and keep IP?

    I likely answered my own question ..

    Brocade really isn't interested in IP portion.

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