Broadcom buys Brocade

For quite a lot of cash

Broadcom has bought Brocade for $ 5.9 billion, further underlining the consolidation in the IT sector.

Brocade is the industry leader in fibre channel storage area networks, switching and IP networking.

Broadcom said it had bought Brocade because of its expertise in storage networking, and also said it would divest the company’s IP networking business.

Hock Tan, CEO of Broadcom, said: “Brocade increases our ability to address the evolving needs of our OEM customers. 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.

Ex Brocade CEO said: “We will work with Broadcom as it seeks to find a buyer four our IP Networking business which includes a full portfolion of open, hardware and software based solutions spanning the core of the data center to the network edge.”