Brocade Pays $3B For Foundry Networks

July 22, 2008 11:14 a.m. EST

San Jose, CA (AHN) - Brocade Communications Systems announced Monday it will acquire Foundry Networks for $3 billion. The purchase gives the data storage company more ammunition against Cisco, a networking giant.

Foundry, based in San Jose, Calif., has around 1,000 employees creating Ethernet switches. The company earned $18.3 million in the second quarter. Cisco earned around $29 billion last year.

The purchase is seen as a way for Brocade to gain a better footing in the networking market, an area experiencing great growth as companies seek out ways to improve the online connections.