Brocade-McData Deal: FTC Wants More Info

Brocade, San Jose, Calif., said in August it entered a deal to acquire Fibre Channel switch rival and peer McData for about $713 million. The request for more information is in connection with the FTC's investigation into the proposed acquisition under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

A Brocade spokesperson said such a request for information is not uncommon with a transaction the size of the company's McData acquisition deal. This is the time the FTC can ask for information about anything that would help the organization feel comfortable with the acquisition, the spokesperson said.

The news marks the FTC's second request for information, but it's not expected to impact Brocade's expectation that the acquisition will close by the end of the first quarter of its fiscal year, which ends on Jan. 27, the spokesperson said.

Brocade's share prices dipped about 3.3 percent to $7.50 in late afternoon trading.