HP to acquire 3Com in $2.7 billion deal
It's been a little while since we've seen a good multi-billion dollar acquisition, but HP's sure come through in a big way today, announcing that it plans to acquire networking giant 3Com in an all-cash deal valued at $2.7 billion, or $7.90 a share. The deal will, of course, still have to clear a few regulatory hurdles and receive the approval of 3Com's stockholders, but it has already been given the go-ahead by both company's boards of directors, and HP expects the transaction to close in the first half of 2010. Not surprisingly, HP sees nothing but pluses with the acquisition, saying that it will do nothing short of "transform the networking industry," and "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." Equally optimistic but slightly cooler on the world-changing language is 3Com CEO Bob Mao, who says that its company's "extensive product line and innovative technology together with HP's breadth and scale will expand our global opportunity."
