![]() ![]() ![]() ![]() “As part of this transaction, our Storage Area Network (SAN) business, will offer a strong complement to Broadcom’s offerings and capabilities, creating one of the industry’s broadest portfolios for enterprise storage,” Carney wrote in the blog post.Ĭarney indicated that the two companies decided to sell the rest of the networking business because of “competitive overlap with some of Broadcom’s most important customers.” In other words, Broadcom didn’t need that part of Brocade’s business competing with what it was already offering, and it didn’t have enough unique customers to make keeping it worthwhile (and I suspect it will also help pay for the deal as well). A 47 percent share price premium will tend to do that.īut the company also saw an opportunity to create a networking storage powerhouse by combining with Broadcom. In a blog post on the Brocade community blog, CEO Lloyd Carney indicated his company wasn’t looking to sell, but Broadcom offered a deal so compelling they couldn’t refuse. It seems what Broadcom had its eye on was the networking storage part of the business and the company believes that by combining the two lines, they could create a powerful entity in the fibre channel Storage Area Network (SAN) business. While Brocade has a broader networking business, under the terms of the deal, Broadcom will divest the IP networking part of the business including Ruckus Wireless, a company Brocade just recently acquired. ![]()
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