Hewlett-Packard agrees to acquire 3Com for $2.7 billion
November 11, 2009
(ChattahBox) — Hewlett-Packard has reached an agreement to acquire 3Com Corporation, a provider of networking switching, routing and security solutions, for $2.7 billion in deal that has already been approved by the boards of both companies.
While analysts view this move in the computer- networking market space as a challenge to Cisco Systems Inc., which has pushed into HP’s server business, Hewlett-Packard said its acquisition of 3Com will bolster it’s Ethernet switching offerings, add routing options and will help improve its business in China.
Hewlett-Packard’s headquarters in Palo Alto, Calif. said in a statement that 3Com shareholders will receive $7.90 for each share of 3Com stock that they hold at the closing of the merger.
The price, at $7.90 a share, is at a premium of about 39 percent to 3Com’s closing price on Wednesday.
Hewlett-Packard also reported a fiscal fourth quarter profit, excluding some items, of $1.14 a share, which slightly beat expectations of a $1.11 a share. Revenue in the quarter was $30.8 billion, down 8 percent the period a year ago.
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Good news. This will make HP growing market cap next year.
Hi,
Really nice and informative post. Thanks for sharing an d keep posing in future too.