Tuesday, July 22, 2008

Brocade To Buy Foundry Networks For $3B

San Jose-based Brocade said Monday afternoon that it is in a definitive agreement to acquire Foundry Networks, a provider of network switching and routing products, in a deal worth approximately $3.0 billion. According to Broacde, it will pay $18.50 in cash plus 0.0907 shares of Brocade common stock for each share of Foundry common stock for the firm. Brocade said the move will make it a leading provider of enterprise and service provider networking solutions. The move has been approved by both companies' boards, and is subject to approval by Foundry stockholders. The deal is being funded by $1.5B in debt financing from Bank of America and Morgan Stanley Senior Funding, Inc. Brocade is a maker of switching hardware for the storage area networking market.