Brocade Communications Systems Inc. is shelling out $3 billion to buy data equipment maker Foundry Networks Inc.
The move is receiving generally positive reviews as a move that will not only strengthen Brocade's product offering but will also allow it to more effectively compete with Cisco Systems.
The combination of Brocade's storage switches and Foundry's data networking switches could have a significant impact on the combined company's ability to offer a complete solution through an enhanced channel strategy.
Brocade, agreed to pay $18.50 in cash plus 0.0907 Brocade share for each Foundry share, valuing the company at $19.25 per share.
Back in May Foundry announced a pair of modules that reportedly allow their BigIron RX Series switches and the NetIron MLX Series routers to deliver the industry's highest 10 gigabit Ethernet (10GbE) and gigabit Ethernet (GbE) density of up to 512 ports of 10GbE and 1,536 ports of GbE in a single system.
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