Broadcom buys Gadzoox assets for $5.8 million

March 3, 2003 —

In a bid to raise its profile in storage networking technology, Broadcom Corp. said Monday that it is buying the assets of Gadzoox Networks Inc. for US$5.8 million.

The cash purchase will transfer Gadzoox's technology to Broadcom, according to a statement released by Broadcom, which will also absorb Gadzoox's engineering team. Gadzoox makes storage networking switching technology.

Gadzoox makes hardware and software for the entry-level SAN (storage area network) market. Its products enable companies to connect servers, switches and storage systems, sharing large, bandwidth-intensive content on a LAN.

Gadzoox's technology includes rack-mounted hardware like the Slingshot line of fabric switches, the Capellix line of SAN switches and FabriCore Engines technology.

That technology will now be added to Broadcom's other storage industry products including gigabit Ethernet and iSCSI (Internet Small Computer System Interface) controllers, ServerWorks Serial ATA (Advanced Technology Attachment) host controllers and I/O bridges, and SiByte broadband network processors, according to Broadcom.

Broadcom, based in Irvine, California, will use Gadzoox's technology to help create a tightly integrated suite of storage networking products that OEMs (original equipment manufacturers) will be able to use to develop "plug and play" storage networks, Broadcom said.

Founded in 1996, Gadzoox struggled to make money over the past few years, as a difficult IT spending environment dampened demand for SAN technology. The San Jose, California, company laid off staff and consolidated its operations in January of 2002. Gadzoox filed for Chapter 11 bankruptcy protection last August.

The final purchase price for Gadzoox technology is subject to a post-closing adjustment, Broadcom said.

IDG News Service