Broadcom completes drawn-out acquisition of Brocade

Broadcom completes drawn-out acquisition of Brocade

Broadcom AVGO 599,38 -11,96 -1,96% has finally achieved completion on its acquisition of Brocade. Announced in November 2016, this deal has finally completed. disposed of various units, such as the vRouter team to AT&T. The closing of the deal also releases others for completion. Expect to see deals closing soon including its Wifi business, Ruckus, and IP and data centre switching businesses.

Even so, there was a lot of scrutiny of the deal. Broadcom provides Cisco (Brocade’s most significant competitor) with chips for their Fiber Channel solutions. This delayed the merger so enough that both sides had to announce that they were still interested in completing the deal, as CIFUS was reviewing the deal. This was helped when Broadcom announced that they would move their headquarters back to the USA. This removed Singapore as a co-headquarters (which was part of the Avago deal in 2016).

Jack Rondoni, previously Senior Vice President of the Networking at Brocade, will run the business as an indirect subsidiary. Brocade Unfortunately, we could not get stock quote BRCD this time. now disappears from traders boards.

“We are very excited to join the Broadcom team and provide compelling benefits for customers and new opportunities for Brocade’s employees.  Broadcom provides us with the scale, resources and complementary capabilities to accelerate growth, execute on our strategic initiatives and extend our market leadership in area networking. We share a common culture of innovation and execution, and we look forward to the exciting new growth opportunities we will have as part of the Broadcom team.” –  Jack Rondoni, General Manager, business unit, Broadcom.

“We are pleased to complete this transaction, which strengthens Broadcom’s position as a leading provider of enterprise and networking solutions and enables us to better serve our OEM customers.Broadcom has a track record of successfully integrating and growing companies we acquire, enabling us to offer customers a leading portfolio of best-in-class franchises across a diverse set of technologies. We intend to invest in and grow the business to further enhance its capabilities in mission-critical storage networking.” – Hock Tan, President and CEO, Broadcom.

Now that the deal is complete; they can focus on landing the big fish of Qualcomm, in the unsolicited bid announced recently.

John Dixon

John Dixon is the Principal Consultant of thirteen-ten nanometre networks Ltd, based in Wiltshire, United Kingdom. He has a wide range of experience, (including, but not limited to) operating, designing and optimizing systems and networks for customers from global to domestic in scale. He has worked with many international brands to implement both data centres and wide-area networks across a range of industries. He is currently supporting a major SD-WAN vendor on the implementation of an environment supporting a major global fast-food chain.

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