Feeds

Brocade sale rumours bursting out

All over the street

Gartner critical capabilities for enterprise endpoint backup

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

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 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.