US: Broadcom again delays takeover of Brocade

Broadcom has again delayed the closing of its planned takeover of Brocade, as it awaits clearance by US regulators. The deal is now expected to close on November 30. Broadcom said talks with the Committee on Foreign Investment in the United States (CFIUS) have resulted in the group withdrawing its application for merger clearance to the committee. It has refiled the application, after which CFIUS will have 45 days to consider the deal. Brocade added that the merger agreement remains in full force and effect.

Brocade also announced that it has signed an agreement with Extreme Networks to directly divest its data center switching, routing and analytics business. The proposed transaction would be completed in lieu of the previously announced sale of that business by Broadcom to Extreme Networks following Broadcom’s proposed acquisition of Brocade. Brocade and Extreme Networks presently expect to close this transaction prior to the closing of Broadcom’s acquisition of Brocade, subject to the satisfaction or waiver of customary closing conditions. The transaction does not require shareholder approval by either company, and is not subject to any financing condition.

Full Content: Wall Street Journal

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