3Com performs $882 million buyout
3Com Corp. of Marlboro has agreed to purchase China-based Huawei Technologies' 49 percent stake of Huawei-3Com (H3C) for $882 million, giving 3Com full ownership of H3C.
The purchase price represents an implied equity value of $1.8 billion, and was reached through a bid process established under the parties' existing shareholders agreement. The agreement allowed for either party to make cash bids to buy the other party's shares in H3C. 3Com's initial bid came on Nov. 15, and its last bid was accepted by Huawei on Nov. 27.
The transaction is subject to customary approval in the People's Republic Of China, and both parties have agreed that the selling shareholder in the bid process would be subject to a non-compete provision for 18 months after closing, under certain circumstances.
Says 3Com president and CEO Edgar Masri: "H3C is a strategic asset and we believe that 3Com is well positioned to help it expand its global presence."
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