Feeds

Brocade sale rumours bursting out

All over the street

HP ProLiant Gen8: Integrated lifecycle automation

Based on a Reuters report, rumours of Brocade shopping itself to private equity buyers are pouring onto the net.

Brocade is the dominant supplier of Fibre Channel SAN switches and directors, and also has an Ethernet switch business through buying Foundry Networks. It is struggling to grow fast and make consistent profits.

A sale has been thought likely, either to a bigger networking supplier looking to consolidate networking suppliers, or to a private equity concern which could refashion the business. It was speculated that Dell looked at Brocade, but rejected it before it bought the Force 10 networking business in June, 2011.

Brocade is well ahead of rival Cisco with 16Gbit/s Fibre Channel technology and produced good quarterly results last November impressing analysts, even though it made a loss.

Frank Quattrone's investment banking outfit Qatalyst Partners had been hired in November 2011 by Brocade, and first round bids for Brocade have now been received. The Wall Street Cheat Sheet reports half a dozen private equity buyers have been involved.

Brocade's market capitalisation is around $2.7bn so any bidder will be willing to spend that sort of cash, or more if a bidding war develops. ®

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.