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Broadcom buying Dune Networks for cloud switching

Broadcom has agreed to acquire Dune Networks, a privately held maker of high-speed switch fabrics, for about US$178 million, the companies announced.

Dune was founded in 2000 and sells chipsets for high-capacity network equipment. Its SAND switch fabric can scale up from 10G bps (bits per second) to 100Tbps in total capacity and support individual ports with speeds up to 100-Gigabit Ethernet, according to the company's Web site. It is designed as the heart of switches for data centers, enterprises LANs, and carrier core and edge routers and Carrier Ethernet platforms.

The acquisition, which is expected to close before the end of Broadcom's first quarter ending March 31, 2010, adds another piece to Broadcom's extensive communications chip arsenal. By bolstering the company's lineup for data-center networking gear, it will help to meet growing demands for cloud computing infrastructure, Broadcom said.

Broadcom will pay mostly cash for Dune, which is based in Sunnyvale, California, and Yakum, Israel. The boards of both companies have approved the deal, but it is subject to customary closing conditions.

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