Broadcom Acquires Brocade For $5.9 Billion

Broadcom Limited, the network semiconductor giant which is a mashup of Broadcom and Avago Technologies, said this morning that it has acquired Brocade Communications Systems, the developer of Fibre Channel switching technology, for $5.9 billion. Broadcom said it will pay $12.75 per share in cash for Brocade. As part of the acquisition, Broadcom said it will divest all of Brocade's IP networking business--including recently acquired Ruckus Wireless. The company said the deal specifically will help it bolster its enterprise storage connectivity offerings. Broadcom still has major operations in Orange County, although its new headquarters is in Singapore.