Broadcom AVGO 239,29 -2,76 -1,14% has finally achieved completion on its acquisition of Brocade. Announced in November 2016, this deal has finally completed. Brocade 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 Storage 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 storage 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, Brocade business unit, Broadcom.
“We are pleased to complete this transaction, which strengthens Broadcom’s position as a leading provider of enterprise storage 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 Brocade business to further enhance its capabilities in mission-critical storage networking.” – Hock Tan, President and CEO, Broadcom.