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Chipmaker Broadcom To Buy Network Gear Maker Brocade For $5.5 Billion


Ron Burgundy
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Broadcom Limited company logo is pictured on an office building in Rancho Bernardo, CaliforniaThe deal, the latest in a consolidating chip sector, will allow Broadcom to corner a larger share of the data center products market by using Brocade's fiber channel switches that speed up data transfer between servers and storage devices. Singapore-based Broadcom, formerly Avago Technologies, is known for its connectivity chips used in products ranging from mobiles to servers, while California-based Brocade makes networking switches, software and storage products. "The deal is highly complementary to Broadcom's existing enterprise storage offerings and boosts its exposure to the high-growth data center market," CFRA Research Angelo Zino said.




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