Brocade (BRCD) this afternoon announced a deal to acquire Foundry Networks (FDRY) for $19.25 a share, consisting of $18.50 a share in cash and 0.0907 shares of Brocade common stock. The company says the total value of the deal is $3 billion.

Brocade says the deal will be accretive to non-GAAP EPS in FY 2009, “with non-GAAP EPS accretion expected to accelerate” in FY 2010. The deal is expected to close in Q4.

The company said it will fund the deal with cash on hand at both companies plus $1.5 billion in debt financing via Bank of America and Morgan Stanley.

Foundry this afternoon reported Q2 revenue of $160.7 million and non-GAAP EPS of 17 cents; the Street had expected $153.5 million and 15 cents.

In after hours trading, Foundry shares have jumped $4.43, or 32.4%, to $18.09; Brocade shares are down $1.38, or 16.6%, to $6.95.