HP to acquire 3COM for $2.7 Billion

 HP and 3Com announced on Wednesday that they had reached agreement for HP to purchase 3Com for a price of $7.90 per share in cash for an value of approximately $2.7 billion. The terms of the transaction have been approved by the HP and 3Com boards of directors. In a move aimed directly at Cisco, HP will use the acquisition of the 3Com networking and security portfolio to further enhance its position as a provider of unified computing, storage, networking, and services. The acquisition of 3Com will dramatically expand HP’s Ethernet switching capabilities, add routing solutions and significantly strengthen the company’s position in China. 3Com’s TippingPoint security offerings add further technology advantages to HP’s portfolio.