Brocade to acquire Foundry in $3 Billion deal

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.

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.