Broadcom Buys Networking Firm Brocade For £4.5bn But Will Sell Off Ruckus Wireless

Chip maker Broadcom is acquiring fibre channel and storage area networking firm Brocade for $5.5 billion (£4.5bn).

As part of the deal, Broadcom plans to sell Brocade’s IP Networking business, comprising wireless and campus networking, data centre switching and routing, and software networking. This includes offloading Ruckus Wireless, which Brocade only acquired for £1 billion earlier this year.

Broadcom Brocade

“This strategic acquisition enhances Broadcom’s position as one of the leading providers of enterprise storage connectivity solutions,” said Hock Tan, Broadcom CEO.

“With deep expertise in mission-critical storage networking, Brocade increases our ability to address the evolving needs of our OEM customers. 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 transaction … creates new opportunities for our customers and partners,” said Lloyd Carney, Brocade CEO.

“Our best-in-class FC SAN solutions will help Broadcom create one of the industry’s broadest portfolios for enterprise storage. We will work with Broadcom as it seeks to find a buyer for our IP Networking business, which includes a full portfolio of open hardware and software-based solutions spanning the core of the data centre to the network edge.”

The deal is not subject to the sale of Brocade’s IP Networking business and is expected to be completed next year.

When completed, the takeover will mark the latest wave of consolidation in the industry. Broacde bought Ruckus in April to strengthen its 5G and Wi-Fi capabilities. But now it seems the benefit of this comprehensive network portfolio will be enjoyed by someone else.

Quiz: What do you know about 4G?

Originally published on ChannelBiz

Antony Savvas

Antony Savvas is a freelance journalist and the editor of TechWeek's sister publication ChannelBiz

Recent Posts

Ericsson To Cut 1,200 Jobs in Sweden Amid ‘Challenging’ Market

Swedish telecoms giant Ericsson blamed “challenging mobile networks market” and “further volume contraction” for job…

4 hours ago

FTX’s Sam Bankman-Fried Sentenced To 25 Years In Prison For $8bn Fraud

Dramatic downfall. Sam Bankman-Fried sentenced to 25 years in prison for masterminding $8bn fraud that…

5 hours ago

Elon Musk Orders FSD Demo For Every Tesla US Sale

Fallout avoidance? Tesla buyers in the US must be shown how to use the FSD…

6 hours ago

Amazon Pumps Another $2.75 Billion Into Anthropic

Amazon completes its $4bn investment into AI firm Anthropic, after providing an additional $2.75bn in…

8 hours ago

The Sustainability of AI

While AI promises unparalleled efficiency, productivity, and innovation, questions regarding its environmental impact loom large.…

10 hours ago

Trump’s Truth Social Makes Successful Market Debut

Shares in Donald Trump’s social media company rose about 16 percent after first day of…

11 hours ago