Brocade to Buy Foundry Networks; Combine for a 800K SF Silicon Valley Footprint

Brocade (NASDAQ:BRCD) today offered to acquire Foundry Networks (NASDAQ:FDRY) in a $3B deal. The two companies together represent roughly 800K square feet of silicon valley office space. Brocade recently executed a deal to acquire a 562K SF Build to Suit to Sale on North First Street. Foundry Network currently occupies 110K SF on Gold Street in San Jose/Alviso on a lease through January 2011. In addition to this, Foundry retains a 141,000 SF headquarters facility in Santa Clara under a lease through May 2010.

Under the terms of the @First purchase Brocade signed in May, it has the right to an additional 4-acre parcel at a cost of $26M. This merger likely means that Brocade will be exercising that right so that it can construct the necessary facilities to be able to bring the Brocade and Foundry teams together in one project by the time Foundry’s leases expire.

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