Julio Urquidi
News Editor
This strategic move could potentially put it in competition with customer companies like Cisco, HP and Intel. So Broadcom said it would sell Brocade’s networking business (largely products from an earlier Ruckus Wireless acquisition - access points, controllers, etc.) to avoid competing with its customers. Broadcom would then focus on using the remaining Brocade technologies to grow its storage networking business.
This purchase, once completed, would follow Broadcom Corp’s acquisition last year by Avago for $37 billion dollars, a move that renamed the latter company to Broadcom Ltd.
Per Broadcom, Brocade’s board of directors and Executive Committee approved the purchase, and expect it to close late next year.