FTC clears Brocade acquisition of McData

The US Federal Trade Commission (FTC) has closed its anti-trust review of Brocade's pending acquisition of McData.

Shareholders of storage company Brocade and data infrastructure company McData will now hold a special meeting on the 25th of January and it is expected that the all-stock transaction, worth $713m (£361m), will close on the 29th of this month.

Brocade made an offer for McData in August 2006. The deal will see Brocade double its share in the San switch market and leave only one other major company to compete with the storage giant. It was thought at the time that the FTC could block the deal on grounds of reduced competition.

Two weeks ago, Brocade announced it had acquired Silverback Systems, a network acceleration processor technology company for an undisclosed sum.

The company has also been at the centre of stock options backdating scandal. Former Brocade chief executive officer, Gregory Reyes, and two other former executives were charged with securities fraud last July in federal district court in San Francisco.

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