Brocade Communications, Foundry Networks merger on track to close in fourth quarter

By Lisa Kerner

Charlotte, N.C., Sept. 15 - The Hart-Scott-Rodino waiting period has ended in the proposed merger of Brocade Communications Systems, Inc. and Foundry Networks, Inc., it was announced on Monday.

In July, Brocade agreed to acquire Foundry for $19.25 per share in a cash and stock deal valued at $3 billion.

Under the companies' merger agreement, Brocade will pay $18.50 per share in cash plus 0.0907 Brocade shares in exchange for each Foundry common share, a Brocade news release said.

Brocade, a San Jose, Calif., network storage equipment company, expects the acquisition to close in the fourth quarter of 2008.

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

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