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The Deal: Brocade Communications Systems has agreed to purchase Foundry Networks for about $3 billion. Under the terms of the deal, each share of Foundry will be exchanged for $18.50 in cash and 0.0907 shares of Brocade. Based on recent prices, the deal values Foundry at $19.25 per share, a premium of 41 percent over Foundry's share price prior to the deal announcement. The deal has been approved by the boards of both companies and is expected to close in the fourth quarter, subject to approval by Foundry's stockholders and other customary closing conditions.