No, Cisco did not acquire Brocade. Brocade Communications Systems, Inc. was acquired by Broadcom Inc.
The Broadcom-Brocade Acquisition
Brocade, a prominent supplier of storage area networking (SAN) hardware and software, was purchased by Broadcom for approximately $5.9 billion. This acquisition was a significant event in the networking and storage industry, reshaping the competitive landscape.
The deal received approval from the US Federal Trade Commission (FTC), but with specific conditions. A crucial condition for the approval was that Broadcom's technology used in chips for Fibre Channel switches, which were built for Cisco, had to be "walled off" or kept separate from Broadcom's newly acquired storage networking business. This measure aimed to prevent potential anti-competitive issues and ensure fair competition in the market.
Key Details of the Acquisition
Here’s a summary of the Brocade acquisition:
| Aspect | Details |
|---|---|
| Acquirer | Broadcom Inc. |
| Acquired Company | Brocade Communications Systems, Inc. |
| Acquisition Value | Approximately $5.9 billion |
| Regulatory Approval | Approved by the US Federal Trade Commission (FTC) |
| Key Condition | Broadcom was required to separate or "wall off" its technology used in chips for Fibre Channel switches built for Cisco from its storage networking business to avoid conflicts of interest and maintain market fairness. |
| Cisco's Involvement | Cisco was not the buyer. Its involvement was as a company whose products utilized technology from Broadcom, necessitating a specific condition in the acquisition agreement to protect fair competition. |
In conclusion, while Cisco is a major player in networking and often involved in large industry transactions, it was Broadcom, not Cisco, that successfully acquired Brocade.
