The industry consolidates a little bit more.
BOSTON (Reuters) – Data storage equipment maker Brocade Communications Systems Inc. said on Tuesday that it would buy McData Corp. for $4.61 per share, or $713 million.
That’s a 48 percent premium to Monday’s $3.11 closing price of McData’s Class A shares. McData’s Class A shares rose 37 percent in pre-market trade on Inet, while Brocade fell 8.8 percent.
Brocade, whose former chief executive is accused of misleading investigators in a probe of the company’s stock options, said the deal would add to earnings by the fourth quarter of combined operations. McData stockholders would own about 30 percent of Brocade.