By Lisa Kerner
Charlotte, N.C., Nov. 11 - Hewlett-Packard Co. announced it will acquire 3Com Corp. for $7.90 per share, or an enterprise value of approximately $2.7 billion.
Both companies' boards of directors have approved the deal, which is slated to close in the first half of 2010, according to an Hewlett-Packard news release.
"By acquiring 3Com, we are accelerating the execution of our converged infrastructure strategy and bringing disruptive change to the networking industry," Dave Donatelli, Hewlett-Packard executive vice president and general manager, enterprise servers and networking, said in the release.
"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 center."
Hewlett-Packard also expects the acquisition to strengthen its position in the fast-growing China market.
3Com, located in Marlborough, Mass., provides secure, converged voice and data networking solutions.
Hewlett-Packard is a computer and printer maker based in Palo Alto, Calif.
| Acquirer: | Hewlett-Packard Co.
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| Target: | 3Com Corp.
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| Announcement date: | Nov. 11
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| Price per share: | $7.90
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| Transaction total: | $2.7 billion
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| Expected closing: | First half of 2010
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| Stock price for target: | Nasdaq: COMS: $5.41 on Nov. 10
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