FTC Accepts Proposed Consent Order In Broadcom's Acquisition Of Brocade

(RTTNews) - Chipmaker Broadcom Limited (AVGO) received greeen signal from FTC on Monday to acquire Brocade Communications Systems Inc. (BRCD) in a $5.9 billion deal. The deal was announced in November.

As a condition of approval, Broadcom agreed to restrictions on its access to competitively sensitive information of customer, Cisco Systems, Inc (CSCO).

Broadcom supplies Cisco, and Brocade competes with Cisco, in making fiber channel switches that transfer large amounts of data between servers and other devices, the FTC said.

The proposed consent order, prevents Broadcom from using Cisco's competitively sensitive confidential information for any purpose other than the design, manufacturing and sale of fibre channel ASICs for Cisco.