Brocade To Acquire Connectem - Quick Facts

(RTTNews) - Brocade (BRCD) announced that it plans to acquire Connectem, a privately-held company in the LTE virtual Evolved Packet Core or vEPC market, in an all-cash transaction.

Terms of the acquisition are not being disclosed, and it is expected to close in Brocade's second quarter of fiscal 2015, subject to customary closing conditions and regulations.

Connectem provides highly-differentiated vEPC solutions with unique architectural attributes that leverage cloud computing, network virtualization, and software networking technologies to deliver higher scale and efficiency on industry-standard x86-based servers. Connectem software focuses on mapping mobile workloads to cloud resources, eliminating the constraints of physical equipment boundaries yet still maintaining the capablity to integrate with traditional node-based EPC architectures.

Upon completion of the acquisition, Connectem will be included in Brocade's Emerging Business Group reporting to Ken Cheng.

Following the acquisition, Brocade expects its fiscal 2015 financial performance to be consistent with the non-GAAP operating margin target of 25% provided during its fiscal first quarter earnings call on February 19, 2015.