McData hopes the buy will bring it additional visibility overseas, and the vendors also expect increased efficiency in manufacturing and sales. Partners of the two vendors include Dell, EMC, and IBM.
CNT shareholders are expected to receive 1.3 shares of McData stock for every share of CNT stock they hold. And the CNT stockholders should end up holding around 24% of the value of the new company.
"There needs to be some consolidation in the market," says James Opfer, an IT analyst at Gartner. "With this acquisition, there's significant product overlap, but there are complementary customers."