(WEB HOST INDUSTRY REVIEW) — Since reaching a tentative deal in July, networking solutions provider Brocade (www.brocade.com) has finally completed its $2.6 billion acquisition of network switching and routing firm Foundry Networks, helping Brocade offer its customers better solutions and strengthen the company’s position as a high-performance networking leader.
According to Brocade’s Friday announcement, Foundry agreed to be sold at a price of $2.6 billion or $16.50 per share. While Foundry’s initial value was $3 billion, the market’s downturn made the terms of the deal re-open to discussion in late October. The multi-billion acquisition of Foundry’s invaluable products and technologies will help Brocade gain industry share and expand its offerings, according to Brocade chief executive officer Mike Klayko.
“The close of the Foundry acquisition will significantly enhance our ability to deliver on our mission of connecting the world’s most important information,” Klayko said in a statement. “Brocade will now be able to offer a comprehensive IP and data center networking solution portfolio capable of addressing emerging market technology trends while meeting the needs of the world’s most demanding, data-intensive organizations.”
Brocade CEO Mike Klayko talked about the acquisition of Foundry Networks in a short video.
Founded in 1996, Foundry currently has approximately 1,100 employees worldwide, many of whom will be working over the next months to integrate the company’s products and technologies with Brocade’s according to function.
Integrating Brocade and Foundry technologies, analysts suggest, will create a company better able to compete with industry leader Cisco Systems (www.cisco.com).
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