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Brocade’s Reportedly Entertaining Bids

The switch maker has reportedly had Qatalyst Partners out looking for a leveraged buyout
By Maureen O'Gara
Article Rating:
January 10, 2012 08:45 AM EST
Reads:
 834

Brocade Communications Systems, which has tried to get bought at least twice before, is entertaining bids according to Reuters, which explains why its stock was up 8% Monday.

The wire service heard from nameless knowledgeable sources that Brocade has gotten "first-round bids from a handful of potential buyers."

The switch maker has reportedly had Qatalyst Partners out looking for a leveraged buyout and Qatalyst is famous for bringing home juicy deals. However, Brocade is apparently no easy sell. According to Bloomberg Qatalyst has been looking for two years. Meanwhile, Dell bought Force 10 and HP bought 3Com. Reuters says Qatalyst was brought back in in November.

Brocade has reportedly talked to Silver Lake, TPG, KKR, Blackstone, Bain and Warburg Pincus. Elliot Associates, instrumental in Novell going private, owns about 10% of Brocade and has been held out as a possible buyer.

Brocade's market cap is around $2.67 billion.

Published January 10, 2012 – Reads 834
Copyright © 2012 SYS-CON Media, Inc. — All Rights Reserved.
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More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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