HP To Acquire 3Com For $2.7 Billion

HP and 3Com have entered into a definitive agreement under which HP will purchase 3Com, a provider of networking, switching, routing and security solutions, at a price of $7.90 per share in cash or an enterprise value of approximately $2.7 billion. The terms of the transaction have been approved by the HP and 3Com boards of directors.

This combination will transform the networking space and underscore HP’s next-generation data centre strategy built on the convergence of servers, storage, networking, management, facilities and services. The resulting business outcome will help customers simplify the network, deploy an innovative edge-to-core network fabric for the enterprise and improve IT service delivery capabilities, all delivered with best-in-class price-performance.

Dave Donatelli, executive vice president and general manager, Enterprise Servers and Networking, HP, said, “By acquiring 3Com, we are accelerating the execution of our Converged Infrastructure strategy. By combining HP ProCurve offerings with 3Com’s extensive set of solutions, we will enable customers to build a next-generation network infrastructure that supports customer needs from the edge of the network to the heart of the data centre.”

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The acquisition of 3Com will expand HP’s Ethernet switching offerings, add routing solutions and strengthen the company’s position in China via the H3C offerings. In addition, the combination will add a large and talented research and development team in China that will drive the acceleration of innovations in HP’s networking solutions.

3Com also brings to HP network security capabilities through its TippingPoint portfolio.