BROCADE AND NETAPP GET ACQUIRED?
Brocade (NASDAQ: BRCD) and- NetApp (NASDAQ: NTAP) once again found themselves during the core of takeover conjecture today.
The Wall Street Journal reported which Brocade has “quietly put itself up for sale,” whilst Barron’s reported which NetApp — prolonged the theme of takeover rumors — has malleable upon the thought of the merger.
If possibly association is acquired, it would be the ultimate in the really active year for interpretation storage M&A, which has already seen Oracle (NASDAQ: ORCL) shopping Sun Microsystems (NASDAQ: JAVA), EMC (NYSE: EMC) winning Data Domain in the behest quarrel with NetApp, as well as Broadcom (NASDAQ: BRCM) and- Emulex (NYSE: ELX) enchanting in the nasty (and- in conclusion unsuccessful) takeover battle.
A Brocade understanding could come reduction than the year after the storage and- Ethernet networking businessman acquired Foundry Networks in the approach plea to Cisco Systems (NASDAQ: CSCO), as the dual storage switch leaders hope for for the new- epoch of SAN-LAN convergence.
HP (NYSE: HPQ) as well as Oracle might be deliberation appropriation Brocade, whilst Stifel Nicolaus researcher Aaron Rakers pronounced IBM (NYSE: IBM) and- Juniper (NASDAQ: JNPR) have been pick probable acquirers. The WSJ pronounced no understanding is approaching and- Brocade might confirm not to sell the company, though Rakers pronounced HP creates the many clarity as an acquirer since of the ProCurve networking business.
HP and- IBM have an additional reason to cruise the Brocade acquisition, after Cisco’s opening in to the server marketplace progressing this year alienated the server marketplace leaders.
Enterprise Strategy Group comparison researcher Brian Babineau pronounced the timing of the intensity understanding is interesting.
“First, they have flattering most accomplished the Foundry acquisition, creation it simpler for the customer to ready them as the whole,” pronounced Babineau. “Second, the server vendors have been seeking for the quarrel opposite Cisco, since which they have been right away the competitor, and- the single approach to do which is to get in the network business. Third, IT will passing from the single to another to incomparable IP networks (10GbE) and- modernized Fibre Channel networks (FCoE) as they get some-more bill resources.
“A marketplace in transition, the great — right away finish — product portfolio, as well as meddlesome buyers can emanate the constrained event,” he concluded. “That being said, all of those things request even if Brocade doesn’t sell, giving them the most appropriate of both worlds.”
Wedbush Morgan researcher Kaushik Roy pronounced an HP or Oracle merger could harm Brocade’s sales as well as send some-more commercial operation to Cisco and- Juniper. “If BRCD were to be paid for by the single of these OEMs, the customer would remove revenues from aspirant OEMs such as EMC, IBM and- DELL,” Roy wrote in the investigate note today. “In such an event, EMC will really expected pierce towards offered some-more CSCO upon Fibre Channel products instead of BRCD. IBM might enter into itself with JNPR upon Ethernet products. Therefore the customer of BRCD would, in reality, be profitable the aloft mixed formed upon the ‘lower’ brazen revenue/EPS estimate.”
Roy referred to which Juniper take QLogic (NASDAQ: QLGC) to get ready for the rising FCoE market.
But R.W. Baird researcher Jayson Noland sees an HP-Brocade multiple as potentially powerful. “We hold the rumored HPQ merger of BRCD would have the disastrous longer-term stroke upon CSCO’s and- JNPR’s marketplace share in switching as well as routing,” he wrote. “The multiple would emanate the some-more critical high-end pick to CSCO and- have the some-more extensive product charity than JNPR’s Enterprise portfolio.”
NetApp Views Merger More Favorably
While the Brocade headlines appears to have the little substance, the NetApp headlines appears to be some-more of the softening in position in between new- CEO Tom Georgens and- his predecessor, Chairman Dan Warmenhoven.
Yunico 03 Jun, 2011--
Source: http://www.digdod.com/brocade-and-netapp-get-acquired-1033025.html
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