Explore Business Standard
Don’t miss the latest developments in business and finance.
Chipmaker Broadcom said on Wednesday it would buy network gear maker Brocade Communications Systems Inc for $5.5 billion in cash, to expand its fiber channel and data storage businesses. The $12.75 per share offer represents a premium of 46.7 per cent to Brocade's close on Friday. Bloomberg reported on Monday that Brocade was in talks to sell itself. Brocade shares were up 7.2 per cent at $12.05 in premarket trading on Wednesday. Broadcom shares were untraded.Singapore-based Broadcom, formerly called Avago, is known for its connectivity chips, while California-based Brocade makes networking hardware, software and storage products."This strategic acquisition enhances Broadcom's position as one of the leading providers of enterprise storage connectivity solutions to OEM customers," Broadcom Chief Executive Hock Tan said in a statement. Customers use Brocade's fiber channel protocol-based networking products to build storage area networks within their data centres.Broadcom said it planned