Foundry Networks, Brocade Communications merger could close in December

By Lisa Kerner

Charlotte, N.C., Oct. 31 - Foundry Networks, Inc. said if it reaches a definitive agreement with Brocade Communications Systems, Inc. following the companies' previously announced new agreement in principle, Foundry's Nov. 7 stockholder meeting will be further delayed.

The meeting to consider the restructured transaction is expected to be convened in December, and the transaction is expected to close in the second half of December.

It was previously reported that the agreement in principle gives Foundry's shareholders $16.50 of cash for each share of Foundry common stock for a total purchase price of approximately $2.6 billion.

Brocade, a San Jose, Calif., network storage equipment company, originally agreed to acquire Foundry for $3 billion, or $18.50 in cash plus 0.0907 Brocade shares for each share of Foundry common stock.

Foundry is a Santa Clara, Calif.-based provider of network switching and routing.

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