HP agrees to buy 3Com for $2.7 billion

Wed Nov 11, 4:35 PM
NEW YORK (Reuters) - Hewlett-Packard Co said on Wednesday that it agreed to buy network equipment maker 3Com Corp for $2.7 billion to help improve HP's position in China and expand its network gear business.
Enlarge Photo
(Reuters)

NEW YORK (Reuters) - Hewlett-Packard Co said on Wednesday that it agreed to buy network equipment maker 3Com Corp for $2.7 billion to help improve HP's position in China and expand its network gear business.

HP said it would pay $7.90 per share for 3Com, giving the company an enterprise value of approximately $2.7 billion.

3Com is in the midst of a strategic shift and has been making a push into the large enterprise market outside China with its H3C brand, trying to take on networking equipment giant Cisco Systems .

It said that the terms of the deal were approved by the HP and 3Com boards of directors and that it is expected to close in the first half of 2010.

(Reporting by Sinead Carew; editing by Carol Bishopric)