Broadcom completed the sale of certain Ethernet controller-related assets to QLogic Corporation for approximately $147 million in cash.
The sale includes certain 10/40/100Gb Ethernet controller-related assets and non-exclusive licenses to intellectual property relating primarily to Broadcom's programmable NetXtreme II Ethernet controller family.
The companies have entered into a long-term supply agreement whereby Broadcom will become ASIC supplier to QLogic in support of the NetXtreme II product line. QLogic also licensed certain Broadcom patents under a non-exclusive patent license agreement that covers QLogic's Fibre Channel products in exchange for a license fee of $62 million.
In January, Brocade has sold its network adapter business to QLogic for an undisclosed sum. This deal included the entire Brocade network adapter product portfolio:
- Brocade 1860 Fabric Adapters
- Brocade 815/825 and 415/425 Fibre Channel Host Bus Adapters, or HBAs
- Brocade 1010/1020 Converged Network Adapters, or CNAs
- HBA and CNA mezzanine adapters for select OEM partners.
Brocade said the sale enables it to focus on meeting the data center networking needs of customers through next-generation fabrics and software defined networking -- the two critical building blocks for modern data centers.