resource center
  See your link here
|
IDG News Service - Foundry Networks Inc. shareholders have approved a merger with Brocade Communications Systems Inc., overcoming what appears to be the last major hurdle in a deal that had been questioned as stock and credit markets plunged.
Brocade announced in July it would buy Foundry for about $3 billion, a deal that would bring a scrappy vendor of enterprise LAN gear into one of the major suppliers of data center network gear. In early October, as stock markets plummeted and credit tightened up, Brocade succeeded in getting a $1.1 billion term-loan facility and $125 million revolving-credit facility for the deal from a group of banks.
But in late October, Foundry reported a fall in third-quarter profit, blaming costs associated with the proposed merger. The Foundry shareholders' vote on the deal was delayed more than once, while Foundry's stock fell sharply. Brocade said it had lowered its bid from the original $19.25 per share to about $16.50 per share, or $2.6 billion. The amended deal also included the sale of Foundry's auction-rate securities, which took place on Tuesday for an estimated $38.8 million.
On Wednesday, a majority of Foundry shareholders voted in favor of the merger, the companies said in a press release. Brocade said that the proceeds from its loan, plus cash on hand at both companies and other funds, are enough to finance the deal. Brocade expects the deal to close on Thursday.
IDG.net
Death to PST Files
Download Now
Business Process Framework Demo
Learn about Configurable Business Processes and Calculated Fields. Watch Now!
A Green Architectural Strategy That Puts IT in the Black
Levergage green computing across your data center. Read more now.
Manager Experience Demo
Go beyond self-service solutions to perform more effectively. Watch Now.
Quantifying the Business Value of VMware View
Learn why you should invest in a centralized virtual desktop.
WAN Optimization as a Managed Service: More than Network Cost Savings
View this Webcast Now!
Forrester Consulting Mobility Study: Taking Control of Enterprise Mobile Device Diversity
Download Now
Asia-Pacific Enterprise Network Solutions
Learn through this Webcast how your business can achieve reliability, performance and value in hard-to-reach locations within the Asia-Pacific region.
What IT Must Do to Support Employee-Owned BlackBerry, iPhone and Android Mobile Devices
Download Now
Mainsoft Webcast w/ Forrester Research: Drive SharePoint Adoption in Lotus Notes Shops
How can you drive mainstream user adoption of Microsoft SharePoint when your users rely on Lotus Notes?
Sign up to receive updates on the latest Networking and Internet resources
Disaster Recovery & Cost Savings Zone
Thousands of customers world-wide have turned to virtualization solutions from Riverbed as a way to reduce costs.
CIO
Computerworld
CSO
DEMO
GamePro
Games.net
IDC
IDG
IDG Connect
IDG Knowledge Hub
IDG TechNetwork
IDG Ventures
IDG.net
InfoWorld
ITwhitepapers
ITworld
JavaWorld
LinuxWorld
Macworld
Network World
PC World
The Industry Standard
Copyright © 1994 - 2010 Computerworld Inc. All
rights reserved. Reproduction in whole or in part in any form or medium
without express written permission ofComputerworld Inc. is prohibited. Computerworld and Computerworld.com and the respective logos are trademarks of International Data Group Inc. |
