Chipmaker Broadcom said on Wednesday it would buy network gear maker Brocade Communications Systems for $5.5 billion in cash, to expand its fiber channel and data storage businesses.
The $12.75 per share offer represents a premium of 46.7% to Brocade’s close on Friday.
Bloomberg reported on Monday that Brocade was in talks to sell itself, and reports intensified Tuesday.
Brocade BRCD 9.39% shares were up 7.2% at $12.05 in premarket trading on Wednesday. Broadcom BRCM 0.00% shares were untraded.
