HP to Acquire 3Com for $2.7 Billion

HP and 3Com announced that they 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 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 industry and underscore HP?s next-generation data center strategy built on the convergence of servers, storage, networking, management, facilities and services. The resulting business outcome will help customers simplify the network, deploy a unique and innovative edge-to-core network fabric for the enterprise and improve IT service delivery capabilities, all delivered with best-in-class price-performance.

"Companies are looking for ways to break free from the business limitations imposed by a networking paradigm that has been dominated by a single vendor," says Dave Donatelli, executive vice president and general manager, Enterprise Servers and Networking for HP. "By acquiring 3Com, we are accelerating the execution of our Converged Infrastructure strategy and bringing disruptive change to the networking industry. 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." The acquisition of 3Com will expand HP's Ethernet switching offerings, add routing solutions, and significantly strengthen the company's position in China. 3Com also brings to HP best-of-breed network security capabilities through its TippingPoint portfolio.

According to Randy Mott, executive vice president and chief information officer for HP, the vendor plans to undertake a global rollout within HP as soon as possible after the completion of the acquisition. The transaction is expected to close in the first half of calendar 2010.

For more information about HP, click here.

For more information about 3Com, go here.