In a bid to boost its standing as a strategic provider of enterprise data storage and management systems, Brocade Communications has entered into an agreement to buy McDATA in a deal rumoured to be worth around $100m.
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There seems to be a good fit to the deal with Brocade specialising in connecting, managing and optimising IT resources in shared storage environments and McDATA being a leading provider of storage networking solutions that centrally manage data infrastructures across SAN, MAN and WAN environments. McDATA claims it has had nearly 25 years experience developing SAN products, services and solutions in the world's largest datacenter, connecting more than two-thirds of all networked data.
The transaction, which has been unanimously approved by the boards of
directors of both companies, is expected to be completed as soon as Brocade's first fiscal quarter of 2007, subject to obtaining approval
from both Brocade and McDATA stockholders and regulatory approvals and certain other closing conditions. Prior to the deal closing, the two companies will operate as separate businesses.
Comments Michael Klayko, Brocade CEO: "[the deal] marks an important
milestone in Brocade's continued success as a strategic provider to the enterprise customer. This combination will accelerate the pace of innovation, enable us to build stronger relationships with our customers and partners and provide greater scale and efficiencies to accelerate our growth. We believe this is a strategic combination that will benefit our customers."