Failing to buy Emulex, Broadcom sues

Broadcom sued Emulex for alleged infringement of 10 patents

Broadcom filed a patent infringement suit against networking company Emulex on Monday, just months after abandoning a nearly year-long effort to buy the company.

Broadcom on Monday filed suit in the U.S. District Court for the Central District of California alleging Emulex infringed 10 patents covering a broad range of high speed data and storage networking technologies.

Emulex responded in a statement saying it is reviewing the patents named in the Broadcom complaint and that it will "vigorously" defend itself.

The patent infringement suit comes just a few months after Broadcom gave up an attempted hostile takeover of Emulex. The companies both develop chips and other networking products.

Broadcom's final offer for Emulex, worth US$925 million at the time, expired in mid-July, after months of trying to convince Emulex management and stockholders to accept its buyout offer.

When Broadcom first made public its attempt to buy Emulex, it revealed that management at the smaller chip designer had broken off discussions in January, forcing Broadcom to make their offer directly to stockholders.

"We would much prefer to have engaged in mutual and constructive discussions with you. However this opportunity is in our view so compelling we now feel we must share our proposal publicly with your shareholders," a public letter to Emulex's board on April 21 signed by Broadcom CEO Stock McGregor said.

The April 21 letter offered Emulex shareholders $9.25 per share for the company, or $764 million at the time. The Broadcom letter noted its "great deal of respect for the technical achievements of the Emulex team" and spoke highly of Emulex's "impressive expertise and leadership in Fibre Channel storage networking."

Broadcom's final offer for Emulex was $11.00 per share. The company's stock closed at $10.53 on the New York Stock Exchange on Monday.

There is no mention of any possible patent conflict in the letter, nor in seven ensuing public statements Broadcom made regarding its offer to Emulex shareholders.

Broadcom dropped the bid on July 9.

On Monday, just over three months since ending the offer, Broadcom has taken a different attitude.

"We believe Emulex is infringing a broad range of Broadcom patents; we are concerned that Emulex's infringement is pervasive," the company said a statement. Broadcom is seeking monetary damages and the cessation of further infringement.

Broadcom could not immediately be reached for comment.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags legalbroadcomlawsuitsEmulexmergers & acquistions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?