After more than a year of waiting for regulatory approval, Broadcom has finally completed its $5.9 billion acquisition of Brocade Communications. Brocade will now operate as an indirect subsidiary of Broadcom with Jack Rondoni, previously Brocade’s SVP of storage networking, serving as the general manager.
In a statement about the closing, Broadcom CEO HockTan said that Broadcom plans to “invest in and grow the Brocade business to further enhance its capabilities in mission-critical storage networking.”
Today’s announcement finally brings the Broadcom/Brocade saga to an end. The deal was initially announced more than a year ago and then delayed a few months ago due to a review by the Committee on Foreign Investment in the United States (CFIUS). That review was reported to have been prompted by national security concerns related to investments by Chinese companies because Broadcom was domiciled in Singapore but has its headquarters in San Jose, California.
But about a month after the CFIUS review was reported, Broadcom announced plans to change the nationality of its corporate structure from Singapore to the United States.
Brocade’s IP Networking Pieces
When the acquisition was announced, Broadcom said it would divest of its IP networking business, including Ruckus Wireless. And in February, Arris announced it would purchase Ruckus Wireless and its ICX switch business for $800 million, but the deal was contingent upon Broadcom’s closing of Brocade.
Now that the Broadcom-Brocade acquisition has closed, it paves the way for Arris to close on Ruckus. Arris said in a statement that it expects to close the Ruckus acquisition following the completion of the CFIUS review. The CFIUS investigation period ends Nov. 30.
Arris said previously that Ruckus COO Dan Rabinovitsj will be in charge of the business, which will operate as a separate unit within Arris. He will be joined by 1,600 Ruckus employees.
Much of the rest of Brocade’s IP business has been acquired. Last month, Extreme Networks completed its acquisition of Brocade’s data center switching, routing, and analytics business.
In June, AT&T acquired Brocade’s Vyatta assets including the Vyatta vRouter. Lumina Networks purchased the company’s software-defined networking (SDN) controller assets. And Pulse Secure purchased Brocade’s virtual application delivery controller (vADC) assets.