… As Well as WeissLaw …

WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Brocade Communications Systems Inc. in connection with the proposed acquisition of the company by Broadcom Limited.  

On November 2, 2016, the company announced that it had reached a definitive agreement for Broadcom to acquire all outstanding shares of Brocade in a transaction valued at approximately $5.9 billion.  Under the terms of the agreement, Brocade’s shareholders will receive $12.75 in cash for each share they own.

WeissLaw is investigating whether Brocade’s board acted to maximize shareholder value prior to entering into the agreement. Notably, at least one analyst set a target price of $14.00, or $1.25 above the offer price. 

Additionally, Brocade announced impressive financial results for the third quarter of fiscal year 2016: revenues grew 13% from $523 million in the second quarter of fiscal 2016 to $591 million in the third.  Finally, according to Hock E. Tan,

Broadcom’s president and CEO, the transaction will provide significant strategic benefits to Broadcom by “enhanc[ing its] position as one of the leading providers of enterprise storage connectivity solutions … [and] increas[ing its] ability to address the evolving needs of [its] customers.”

Given these facts, WeissLaw is investigating whether Brocade’s board acted in the best interests of company’s public shareholders to maximize shareholder value prior to entering into the agreement.