FTC clears Brocade-McData deal

Companies expect to complete Brocade's acquisition of McData by Jan. 29

The U.S. Federal Trade Commission (FTC) has cleared the pending acquisition of McData by Brocade Communications Systems after an antitrust review, removing the last regulatory hurdle to the deal.

Brocade, a maker of storage area network switches, made a $713 million stock offer for McData in August 2006. Both are rivals to industry giant Cisco Systems.

The shareholders of Brocade and McData will hold separate meetings Jan. 25 to affirm the acquisition, which the companies expect to complete by Jan. 29.

Brocade's former chief executive officer and founder, Greg Reyes, left the company in 2005. He faces trial, along with other former Brocade executives, in Federal District Court in San Francisco on charges related to backdating of stock option grants.

Copyright © 2007 IDG Communications, Inc.