Brocade to acquire Foundry in $3 Billion deal

Brocade to acquire Foundry in $3 Billion deal

Summary: Brocade has said it will acquire Foundry Networks, a company that does enterprise and service provider switching and routing, in a deal valued at $3 billion.The acquisition, which still needs final approval, comes on the heels of corporate problems for Brocade, notably the criminal misconduct sentence handed down against former CEO Gregory Reyes and a $160 million payment to settle a federal securities lawsuit tied to the company's stock-option backdating processes.

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Brocade has said it will acquire Foundry Networks, a company that does enterprise and service provider switching and routing, in a deal valued at $3 billion.

The acquisition, which still needs final approval, comes on the heels of corporate problems for Brocade, notably the criminal misconduct sentence handed down against former CEO Gregory Reyes and a $160 million payment to settle a federal securities lawsuit tied to the company's stock-option backdating processes.

The companies expect the deal to be finalized later this year.

Topics: IT Employment, Banking, CXO

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  • Ethernet Simplicity Winning

    This acquisition confirms to me that Ethernet simplicity will be the long-term winner in the data center.

    http://blog.tmcnet.com/the-hyperconnected-enterprise/data-center/brocade-foundry-acquisition-confirms-ethernet-simplicity-will-win.asp
    TonyRyb