HP To Acquire 3Com For $2.7B
Marlborough-based 3Com Corp. has entered into a definitive agreement to be acquired by HP for $2.7 billion, or about $7.90 per share.
The acquisition is part of HP's "converged infrastructure" data center development strategy. 3Com makes networking switches, routers and security equipment.
The acquisition will expand HP's Ethernet switching offerings, and strengthen the company's position in China, HP said in a statement. 3Com, through its H3C unit, has a significant presence in China, including a large research and development operation.
HP said H3C's R&D department "will drive the acceleration of innovations to HP's networking solutions."
The transaction is expected to close in the first half of 2010.
For the first quarter, 3Com reported revenue of $290.5 million, a 15.2 percent decrease from the same period the prior year, and a profit of $7.5 million compared to $79.8 million a year ago.
3Com has about 325 employees in Central Massachusetts. Neither 3Com nor HP could be reached for comment this afternoon on what the deal means for local jobs. HP already has operations in the region, including in Marlborough.
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