Foundry Networks, Brocade merger set to close Thursday

By Lisa Kerner

Charlotte, N.C., Dec. 17 - Foundry Networks, Inc. shareholders approved the company's merger with Brocade Communications Systems, Inc. at a special meeting on Wednesday.

Brocade said it expects to close the acquisition on Thursday.

Foundry shareholders will receive $16.50 per share under the amended definitive agreement, a Brocade news release said.

Brocade, a San Jose, Calif., network storage equipment company, said it has sufficient financing for the transaction including net proceeds from a $1.1 billion term loan facility, cash on hand at the two companies and a small draw under its revolving credit line.

With the sale of its portfolio of auction-rate securities completed, Foundry expects to pay a conditional special cash dividend of about $0.249 per share to its shareholders immediately prior to the merger's close.

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

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