M & A Activity – HP to Acquire 3Com Corp for $2.7 Billion

Hewlett Packard (HP) and 3Com Corporation announced late last week that HP will acquire 3Com for around $2.7 billion. The terms of the agreement have been approved by the board of directors at both companies.

The move will allow HP to simplify their network and improve on their delivery of IT services. The acquisition will also help HP to expand into Chinese markets, currently one of the fastest growing markets in the world. It will allow HP to add routing solutions and expand on Ethernet switching offers. Dave Donatelli, EVP and general manager of Enterprise Servers and Networking at HP, said “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. By acquiring 3Com, we are accelerating the execution of our Converged Infrastructure strategy and bringing disruptive change to the networking industry.”

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