Mcdata (NASDAQ:MCDT)
Historical Stock Chart
From Jun 2019 to Jun 2024
McDATA Corporation (Nasdaq: MCDTA)(Nasdaq: MCDT), a leading provider of
data access solutions, today announced that Institutional Shareholder
Services and Glass, Lewis & Co., two leading independent proxy advisory
firms, both recommend that McDATA stockholders vote "FOR" Brocade
Communication Systems, Inc.’s (Nasdaq: BRCD)
proposed acquisition of McDATA. The vote will occur during McDATA’s
January 25, 2007, special meeting of stockholders. Stockholders of
record as of the close of business on November 30, 2006, will be
entitled to vote at the special meeting.
ISS and Glass Lewis are widely recognized as the leading independent
proxy advisory firms in the nation. Their recommendations are reviewed
and considered by major institutional investment firms, mutual firms and
other fiduciaries throughout the country.
On January 10, 2007, an ISS report recommended, “…based
on our review of the strategic rationale, the positive market reaction
to merger announcement and the offer price premium, we believe that the
merger agreement warrants shareholder approval.”(1)
Glass Lewis’ January 8, 2007 report, also
recommended stockholder approval. In the report, Glass Lewis said, “Despite
the ongoing FTC review, we believe that the proposed transaction has
benefits for shareholders of both companies. The combination allows the
companies to address the increasingly competitive marketplace and the
potential entry of other companies. The transaction allows the companies
to broaden and integrate their product lines, reduce operational costs,
accelerate investments in new products, and deliver higher levels of
service to the combined customer base."(1)
(1) Permission to use quotations from the ISS and Glass Lewis reports
was neither sought nor obtained.
"ISS and Glass Lewis’ recommendations
follow the McDATA Board’s belief that joining
with Brocade will improve long-term growth opportunities, and thus
create significant value for our stockholders,”
said McDATA Chief Executive Office John Kelley. “Greater
efficiencies and more agile scalability gained with the acquisition
should position the combined entity well for faster innovation, stronger
partnerships and the ability to respond quickly with solutions that meet
customers’ requirements.”
As previously announced on August 8, 2006, McDATA and Brocade have
entered into a definitive agreement whereby Brocade will acquire McDATA
in an all-stock transaction. Under the terms of the agreement, McDATA
stockholders will receive 0.75 shares of Brocade common stock for each
share of McDATA class A common stock and each share of McDATA class B
common stock they hold. The acquisition is subject to obtaining approval
from both Brocade and McDATA stockholders, regulatory approvals and
certain other closing conditions.
IMPORTANT ADDITIONAL INFORMATION HAS BEEN FILED WITH THE SEC
Brocade has filed with the SEC a Registration Statement on Form S-4 in
connection with the merger, and Brocade and McDATA have filed with the
SEC and mailed to their respective stockholders a Joint Proxy
Statement/Prospectus in connection with the transaction. The
Registration Statement and the Joint Proxy Statement/Prospectus contain
important information about Brocade, McDATA, the merger and related
matters. Investors and security holders are urged to read the
Registration Statement and the Joint Proxy Statement/Prospectus
carefully. Investors and security holders may obtain free copies of the
Registration Statement and the Joint Proxy Statement/Prospectus and
other documents filed with the SEC by Brocade and McDATA through the web
site maintained by the SEC at www.sec.gov.
In addition, investors and security holders may obtain free copies of
the Registration Statement and the Joint Proxy Statement/Prospectus from
Brocade by contacting Investor Relations at 408-333-5676 or investor-relations@brocade.com
or from McDATA by contacting Investor Relations 408-567-5815 or investor_relations@mcdata.com.
Brocade and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the stockholders of
Brocade and McDATA in connection with the merger described herein.
Information regarding the special interests of these directors and
executive officers in the merger described herein will be included in
the Joint Proxy Statement/Prospectus described above. Additional
information regarding these directors and executive officers is also
included in Brocade's proxy statement for its 2006 Annual Meeting of
Stockholders, which was filed with the SEC on or about February 24,
2006. This document is available free of charge at the SEC's web site at www.sec.gov
and from Brocade by contacting Brocade at Investor Relations at
408-333-5676 or investor-relations@brocade.com.
McDATA and its directors and executive officers also may be deemed to be
participants in the solicitation of proxies from the stockholders of
Brocade and McDATA in connection with the merger described herein.
Information regarding the special interests of these directors and
executive officers in the merger described herein will be included in
the Joint Proxy Statement/Prospectus described above. Additional
information regarding these directors and executive officers is also
included in McDATA's proxy statement for its 2006 Annual Meeting of
Stockholders, which was filed with the SEC on or about June 9, 2006.
This document is available free of charge at the SEC's web site at www.sec.gov
and from McDATA by contacting McDATA Investor Relations 408-567-5815 or investor_relations@mcdata.com.
About McDATA (www.mcdata.com)
McDATA (Nasdaq: MCDTA)(Nasdaq: MCDT) is the leading provider of data
access solutions, helping customers build, globally connect, optimize
and centrally manage data infrastructures across SAN, MAN and WAN
environments. With nearly 25 years experience developing SAN products,
services and solutions, McDATA is the trusted partner in the world's
largest data centers, connecting more than two-thirds of all networked
data.
Forward-Looking Statements
This press release contains statements about expected future events that
are forward-looking and subject to risks and uncertainties. Readers are
urged to consider statements that include the terms "believes,"
"belief," "expects," "plans," "objectives," "estimates," "anticipates,"
"intends," "targets," or the like to be uncertain and forward-looking.
Factors that could cause actual results to differ and vary materially
from expectations include, but are not limited to, McDATA’s
relationships with EMC, IBM and Hitachi Data Systems and the level of
their orders, aggressive price competition by numerous other SAN and IP
switch suppliers, OEM qualification of our new products - such as the
Intrepid 10000 Director, integration of CNT’s
sales and marketing functions, manufacturing constraints, constraints in
obtaining third party product for resale and other risk factors that are
disclosed in McDATA’s filings with the
Securities and Exchange Commission. These cautionary statements by
McDATA should not be construed as exhaustive or as any admission
regarding the adequacy of disclosures made by McDATA. All cautionary
statements should be read as being applicable to all forward-looking
statements wherever they appear. McDATA does not undertake any
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.