Broadcom acquires Brocade Communications Systems, Inc.

Broadcom acquired Brocade Communications Systems, Inc. for ~$5.9 billion, a transaction completed in November 2017, structured as all cash.

Brocade Communications Systems, Inc. operates in Enterprise storage / networking, is based in San Jose, California, USA. Broadcom (then Broadcom Limited) acquired Brocade, a leader in Fibre Channel storage area network (SAN) switching, to strengthen its enterprise storage connectivity portfolio for OEM customers. Consistent with Broadcom's model, it kept the FC SAN switching franchise and divested Brocade's IP Networking business, including the Ruckus Wireless assets Brocade had recently bought.

Strengthens Broadcom's position as a leading provider of enterprise storage connectivity solutions to OEM customers; the FC SAN business fits Broadcom's business model and was expected to add about $900 million of pro forma non-GAAP EBITDA in FY2018.

Market-leading Fibre Channel SAN switching franchise consistent with Broadcom's OEM-focused enterprise storage model. ~$900 million of pro forma non-GAAP EBITDA expected to be added in FY2018; immediately accretive to non-GAAP EPS. Brocade operates as an indirect subsidiary led by Jack Rondoni as GM; IP Networking business divested.

Advisory firms were not disclosed for this transaction.