HP to acquire networking-gear maker 3Com for $2.7 billion
12 Nov 2009
After Logitech unveiled its plans to compete with Cisco in the video-conferencing segment through its acquisition of LifeSize Communications (See: Logitech acquires LifeSize Communications for $405 million), Hewlett-Packard yesterday disclosed its agrement to to acquire networking-gear maker 3Com for $2.7 billion in cash, to enter into other areas than PC and pose a challenge to market leader Cisco systems in the network equipment market.
The Palo Alto-based world's No 1 personal computer maker said that under the deal, 3Com stockholders will receive $7.90 for each share of 3Com common stock that they hold at the closing of the merger.
The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals, the approval of 3Com's stockholders and expects the transaction to close in the first half of calendar 2010.
Marlborough-based 3Com Corporation is a $1.3-billion global enterprise networking solutions provider with three global brands – H3C, 3Com and TippingPoint – that offer high-performance networking and security solutions.
The H3C enterprise networking portfolio includes products that span from the data centre to the edge of the network and is targeted at large enterprises. The H3C enterprise networking portfolio is a market leader in China.
TippingPoint features network-based intrusion prevention systems (IPS) and network access control (NAC) solutions that deliver application, infrastructure and performance protection. Its portfolio of products and solutions enable customers to manage business-critical voice, data, video and other networking technologies in a secure network environment.