Broadcom Acquires Gadzoox

IRVINE and SANTA CLARA, Calif. -- Broadcom Corporation (Nasdaq: BRCM - News), the leading provider of integrated circuits enabling broadband communications, today announced that it has acquired a substantial portion of the assets of Gadzoox Networks, Inc., a leading provider of storage networking technology. Storage networks connect servers, switches and storage systems together to lower the total cost of ownership in business data centers.

The majority of storage networking options available today are based on non-interoperable implementations, creating an artificial cost barrier to widespread adoption, especially in the small- to medium-sized business segments of the market. The most widely deployed transport protocol for storage networking at present is Fibre Channel. Gadzoox Networks was the first company to develop open standards-based 1-, 2- and 10-Gigabit Fibre Channel technology that is also interoperable with legacy networks."Availability of proven Fibre Channel technology is a significant barrier to entry in the storage networking industry," said Alan E. "Lanny" Ross, President and CEO of Broadcom. "The acquisition of Gadzoox® technology and the company's experienced engineering team will allow Broadcom to change the economic dynamics of storage networking, similar to our success in achieving industry leading integration and cost points for Ethernet networking.""As storage requirements continue to grow in the data center, OEMs require solutions that simplify connectivity, save space, and require less power," said Steve Dalton, CEO of Gadzoox Networks. "Combining Broadcom's mixed- signal design expertise with the field-proven silicon and firmware of Gadzoox will create highly integrated silicon solutions that will enable server, switch and storage system OEMs to develop plug and play storage networks with vast improvements in power and footprint requirements."Broadcom acquired the Gadzoox Networks assets for the cash purchase price of approximately $5.8 million, subject to a post-closing adjustment.Broadcom Corp. Gadzoox Networks Inc.