Although Brocade Communication Systems Inc.’s acquisition of rival McData Corp. for about $713 million in stock should help it compete with industry leader Cisco Systems Inc., integrating its new purchase could be tricky.
That’s because McData itself is the product of several large acquisitions, which the data storage company executed in response to Cisco’s entry into the market in 2002 and to boost slowing growth. McData, No. 2 in the sector, last year bought fiber-optic switch maker Computer Network Technology Corp. for $235 million and in 2003 acquired rivals Sanera Systems Inc. and Nishan Systems Inc.
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