Broadcom Buying Networking Products Maker Brocade for $5.9 Billion

Broadcom agreed to buy Brocade in a $5.9 billion takeover of the networking products maker that provides fiber-channel switches, routers and the like and helps automate networks. The acquirer will divest Brocade’s IP Networking business of wireless and campus networking, data center switching and routing, and software networking systems, it said in a Wednesday news release. "We are confident that we will find a great home for Brocade’s valuable IP networking business that will best position that business for its next phase of growth," said Broadcom CEO Hock Tan. Broadcom/Brocade is expected to be completed in the second half of the fiscal year that began Monday "subject to regulatory approvals in various jurisdictions" among other things, the buyer said; it's not conditioned on jettisoning IP Networking. Spokespeople didn't comment on our further queries.