Network vendor Brocade looking for a buyer: reports

Chipmaker Broadcom potential suitor, according to Bloomberg

Tags: Brocade (www.brocade.com)Mergers and acquisitionsUnited Arab Emirates
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Network vendor Brocade looking for a buyer: reports The network-equipment maker is nearing the final stages of a sale process, according to reports.
By  David Ndichu Published  November 2, 2016

Brocade Communications Systems Inc. is in advanced talks to sell itself, Bloomberg is reporting.

The network-equipment maker is nearing the final stages of a sale process, Bloomberg said, citing sources familiar with the matter. Chipmaker Broadcom is one of the interested potential buyers, although no deal has been reached and talks may still fall apart, the report added.

Broadcom makes the chips that power the equipment such as Brocade’s network equipment, helping the former expand its reach into data centre build-out market and the booming cloud space.    

The sale is a bit of surprise as Brocade itself has been on a purchasing quest itself, acquiring wireless brand Ruckus Wireless earlier this year.  

The move though reflects shift in the networking business, with a market dominated by the likes of Cisco on end, while customers seek out cheaper “white box” hardware run on open-source software on the other end.

Broadcom touts its credentials on this very concept, with its flagship BroadView suite built on open source software.

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