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Chipmaker Broadcom to buy network gear maker Brocade for $5.5 billion
By Supantha Mukherjee and Liana B. Baker, Nov. 02, 2016 – Chipmaker Broadcom Ltd (AVGO.O) said it would buy Brocade Communications Systems Inc (BRCD.O) for $5.5 billion, pushing deeper into the fast-growing market for network equipment used in data centers.
The deal, the latest in a consolidating chip sector, will allow Broadcom to corner a larger share of the data center products market by using Brocade's fiber channel switches that speed up data transfer between servers and storage devices.
Singapore-based Broadcom, formerly Avago Technologies, is known for its connectivity chips used in products ranging from mobiles to servers, while California-based Brocade makes networking switches, software and storage products.