Brocade Communications Systems, Inc. (NASDAQ:BRCD) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01. Completion of Acquisition or Disposition of Assets

As previously reported, on October3, 2017, Brocade Communications Systems, Inc. (the “Company” or “Brocade”) entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Extreme Networks, Inc., a Delaware corporation (“Extreme Networks”), to divest its data center switching, routing and analytics business (the“SRA Business”) to Extreme Networks (the “SRA Sale”). On October27, 2017, the Company and Extreme Networks completed the SRA Sale.

to the terms of the Purchase Agreement, upon the closing of the SRA Sale, Extreme Networks acquired certain assets associated with the SRA Business, assumed certain contracts and liabilities of the SRA Business, and hired certain Brocade employees associated with the SRA Business. In addition, upon the closing of the SRA Sale, Extreme Networks paid to the Company an upfront closing cash payment equal to $23million (inclusive of $13million representing target working capital, which is subject to a post-closing true-up adjustment based on the finally determined amount of working capital). Further, under the Purchase Agreement, Extreme Networks has also agreed to pay to the Company: (i)a deferred payment equal to $20million to be paid in installments of $1million per quarter for the next 20 full fiscal quarters of Extreme Networks following the closing of the SRA Sale, plus (ii)quarterly earnout payments equal to 50% of the profits of the SRA Business for the five-year period commencing at the end of the first full fiscal quarter of Extreme Networks following the closing of the SRA Sale.

(b) Pro Forma Financial Information.

The pro forma financial information required by Item 2.01(b) of Form 8-K will be filed by amendment to this Current Report on Form 8-K within four business days after the occurrence of the event that required the filing of this Current Report on Form 8-K.

About Brocade Communications Systems, Inc. (NASDAQ:BRCD)

Brocade Communications Systems, Inc. (Brocade) is a supplier of networking hardware, software and services, including storage area networking (SAN) solutions and Internet protocol (IP) networking solutions for businesses and organizations of various types and sizes. The Company operates through three segments: SAN Products, IP Networking Products and Global Services. The SAN Products segment includes infrastructure products and solutions that help customers develop and deploy storage and server consolidation, disaster recovery and data security. The IP Networking Products segment includes Layer 2 and Layer 3 Ethernet switches, and routers to connect users over private and public networks. The Global Services segment includes break or fix maintenance, installation, consulting, network management and software maintenance, and post-contract customer support. Its products enable customers to deploy architectures and technologies, including virtualization and cloud computing.