BroadCom Makes $764M Bid for Emulex

The looming shift to a converged data center continues to drive merger activity. Broadcom (BRCM) today launched a hostile $764 million takeover bid for Emulex (ELX), which is among the companies with network adapters for unified network fabrics using Fibre Channel over Ethernet (FCoE), the emerging protocol to connect Ethernet LANs and Fibre Channel storage networks. Broadcom made overtures to the Emulex board, which responded by adopting a “poison pill” takeover defense.

Broadcom is undeterred, and its $9.25 a share bid is a 40 percent premium to the Monday close for Emulex. “Broadcom believes that its leadership in Ethernet networking, together with Emulex’s deep expertise in Fibre Channel storage networking, will enable the combined company to accelerate the development of converged solutions for enterprise networks,” the company said in a statement.

See The Register, ChannelWeb, Tech Trader and GigaOm for additional analysis.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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