Broadcom has completed its acquisition of Brocade Systems following various delays, a deal that will give the chipmaker a broader foothold in the mission-critical storage networking segment.
Completing this acquisition was not easy.
In October, reports emerged that Broadcom had to push up the deadline to close the deal to comply with further regulatory reviews.
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Broadcom and Brocade, which announced their agreement last year, could have abandoned the transaction on Nov. 1 if a deal had not been completed. The acquisition was delayed due to a review by the Committee on Foreign Investment in the United States, or CFIUS, a government agency.
With the acquisition now completed, Brocade shares will now stop trading on the Nasdaq stock exchange.
The company will operate as an indirect subsidiary of Broadcom and be led by Jack Rondoni as GM. Rondoni previously served as senior VP of Storage Networking at Brocade, after joining in 2006.
Hock Tan, CEO of Broadcom, said the company intends “to invest in and grow the Brocade business to further enhance its capabilities in mission-critical storage networking."
But Brocade is only one of two acquisition targets Broadcom is looking at to enhance its growth strategy. Broadcom has also made a $130 billion bid Qualcomm, which has so far been rejected.