Hewlett Packard acquires 3Com – government approval awaited

18th November, 2009 by adina
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Hewlett Packard has bought 3Com, a leading provider of routing, networking switching and security solutions, for $2.7 billion, at a price of $7.90 per share, in order to be involved in server and networking businesses. This acquisition will turn HP into an important source of data centers and large-scale server environments. Once the terms of the transaction approved by the HP and 3Com boards of directors, the deal is waiting for a government approval, but there is hope it could be completed in the first half of 2010. The acquisition is supposed to be a counter attack of 3Com towards its eternal rival Cisco, which is subject to a similar deal with EMC involving virtualization expert VMware.

This merge will impact on other 3Com products as well. 3Com offers business-class networking along with security services and a number of products for home users, some of them being hybrid modem/router combos. It is unclear yet if Hewlett Packard will use technologies provided by 3Com into non-business products.


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