Broadcom, Ltd bought Brocade Communications Systems today for $5.9 billion, giving the company a strong offering in networking storage business.
It’s quite a nice deal for Brocade shareholders, who gain a 47 percent premium over the $8.69 closing price last Friday night (October 28th). Under the terms of the deal, Broadcom will pay $12.75 per share.
It’s an all-cash $5.5 billion transaction with Broadcom also assuming $400 million of net debt for the total of $5.9 billion.