An anonymous reader quotes a report from Reuters: Chipmaker Broadcom Ltd said it would buy Brocade Communications Systems Inc for $5.5 billion, pushing deeper into the fast-growing market for network equipment used in data centers. The deal, the latest in a consolidating chip sector, will allow Broadcom to corner a larger share of the data center products market by using Brocade’s fiber channel switches that speed up data transfer between servers and storage devices. Singapore-based Broadcom, formerly Avago Technologies, is known for its connectivity chips used in products ranging from mobiles to servers, while California-based Brocade makes networking switches, software and storage products. Broadcom said it planned to sell Brocade’s networking business, which makes controllers and access points that help businesses offer high-speed internet to their customers, to avoid competing with its top customers such as Cisco Systems Inc.

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Source: Slashdot – Chipmaker Broadcom To Buy Network Gear Maker Brocade For .5 Billion