Brocade purchases McData in $713 million all-stock deal

BROOMFIELD – One year after Sun Microsystems Inc. announced its intentions to purchase Louisville-based Storage Technology Corp., another Silicon Valley data storage company staked a claim on another home-grown company.

Brocade Communications Systems Inc. (Nasdaq: BRCD), a San Jose, Calif. network storage company, will buy Broomfield-based McData Corp. (Nasdaq: MCDTA; MCDT) in an all-stock transaction worth about $713 million.

The transaction is expected to be completed by first quarter 2007.

Following the closing, Brocade’s executive management team will continue to serve in their current roles. John Kelley, McData’s chief executive officer, will serve as an adviser to Brocade. Two McData directors are expected…