“This transaction represents significant value for our shareholders, who will receive a 47% premium from the Brocade closing share price on Friday, October 28, 2016, and creates new opportunities for our customers and partners,” said Lloyd Carney, Chief Executive Officer of Brocade. “Our best-in-class FC SAN solutions will help Broadcom create one of the industry’s broadest portfolios for enterprise storage. In addition, we are confident that we will find a great home for Brocade’s valuable IP networking business that will best position that business for its next phase of growth.” “This strategic acquisition enhances Broadcom’s position as one of the leading providers of enterprise storage connectivity solutions to OEM customers,” stated Hock Tan, President and Chief Executive Officer of Broadcom. “With deep expertise in mission-critical storage networking, Brocade increases our ability to address the evolving needs of our OEM customers.

Broadcom, with the support of Brocade, plans to divest Brocade’s IP Networking business, consisting of wireless and campus networking, data center switching and routing, and software networking solutions. Broadcom expects to fund the transaction with new debt financing and cash available on its balance sheet.

(Nasdaq:BRCD) today announced that they have entered into a definitive agreement under which Broadcom will acquire Brocade, a leader in Fibre Channel storage area network (“FC SAN”) switching and IP networking, for $12.75 per share in an all-cash transaction valued at approximately $5.5 billion, plus $0.4 billion of net debt. 02, 2016 (GLOBE NEWSWIRE) - Broadcom Limited (Nasdaq:AVGO) and Brocade Communications Systems, Inc.

Immediately accretive to Broadcom’s non-GAAP EPS.

$900 million of pro-forma non-GAAP EBITDA expected to be added in FY2018.

Strategic acquisition strengthens Broadcom’s portfolio of enterprise storage and networking solutions serving OEM customers.

Broadcom to retain Brocade’s Fibre Channel SAN Switching business and divest Brocade’s IP Networking business, including recently acquired Ruckus Wireless.

Brocade communications