Brocade to buy Foundry for US$3 billion

Storage networking company Brocade Communications Systems has agreed to acquire enterprise LAN vendor Foundry Networks for approximately US$3 billion.

Storage networking company Brocade Communications Systems has agreed to acquire enterprise LAN vendor Foundry Networks for approximately US$3 billion, the companies announced Monday.

Brocade said the deal will make it a top provider of networking gear for enterprises and service providers, by allowing it to offer a full line of products that extends from the Internet to wide- and local-area networks and into the data center.

The deal has been approved by the boards of both companies and is expected to close in the fourth quarter, pending approval by Foundry's stockholders and other closing conditions, Brocade said.

Brocade will pay US$18.50 in cash plus about one-tenth of a share of Brocade stock for each share of Foundry, for a total of US$19.25 per share. Brocade expects to fund the deal with cash from both companies and US$1.5 billion of debt financing.

"Our business models and technologies are extremely synergistic," Marty Lans, Brocade senior director of product management for data center infrastructure, said in an interview. Foundry has "the best technology and the broadest set of features," he said.

The companies do not expect to make layoffs following the deal, he said.

Foundry was founded in 1996 and has about 1,100 employees. It posted its preliminary second-quarter financial results Monday. Revenue was US$160.7 million, up from US$143.2 million in the same quarter last year. Net income was US$18.3 million, up from US$15.6 million.

(James Niccolai in San Francisco contributed to this report.)

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?