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» VIEW ALL POSTS Dec 17 2008   4:21PM GMT

Brocade set to close Foundry acquisition



Posted by: Dave Raffo
Tags:
Storage

Brocade cleared its final hurdle to its $2.6 billion acquisition of Ethernet networking firm Foundry Networks today when Foundry’s shareholders approved the deal.

In Brocade’s release announcing the approval, the Fibre Channel switch vendor said it expects to close the deal Thursday. Brocade also said it will probably not require more financing than the $1.1 billion loan it secured in October.

Brocade has been trying to wrap up the deal since July, when it revealed it would pay $3 billion for Foundry. With financing tough to come by with current economic conditions, the companies renegotiated the price downward Oct. 30. That prompted the Foundry shareholders to push back their approval vote.

Under final terms, Brocade will pay $16.50 in cash for each Foundry share. Foundry shares closed at $16.62 today, up from their opening price of $15.96.

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