HP to buy 3Com in $US2.7bn networking, data center bid

The deal will bring more Ethernet strength to HP's broad enterprise lineup

Hewlett-Packard has agreed to buy 3Com for about $US2.7 billion, pushing forward the giant IT vendor's strategy for combining computing, storage, services and networking under one roof.

The deal has been approved by both companies' boards of directors and is expected to close in the first half of next year.

HP is offering $US7.90 per share for 3Com, about $US2 per share above the stock's price of $US5.69 at the close of trading on Wednesday. U.S. and foreign regulatory approvals will be required, the companies said.

3Com will add to HP's Ethernet switching portfolio, which is already a growing competitor to Cisco Systems, and add routing products to its lineup.

"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," said Dave Donatelli, executive vice president and general manager, Enterprise Servers and Networking, at HP, in a prepared statement.

"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 will also give HP access to a research and development team and strong sales channels in China, where 3Com operates the H3C subsidiary it originally formed as a joint venture with Huawei Technologies.

The deal would also bring in 3Com's TippingPoint line of intrusion prevention products.

As data centers are centralized and virtualized, the largest IT vendors are pursuing data-center strategies that span all parts of what is increasingly a single infrastructure of networks, storage, computing and software.

Cisco's introduction of servers earlier this year made it a more direct competitor to HP as well as IBM. HP's own ProCurve networking line has already gained ground on Cisco in enterprises over the past few years.

3Com has trailed the dominating Cisco in the networking arena since the late 1990s and has pursued several different strategies to find its place in the market.

Its TippingPoint acquisition gave it a strong position in intrusion prevention, and the company has also focused on networking gear for small and medium-sized businesses.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags HPNetworking3Commergers & acquistions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?