Hewlett-Packard will acquire 3Com by 2.7 billion, Compete with Cisco

IT news:

HP's acquisition of 3Com 7.90 U.S. dollars per share, , representing a premium of 39%

HP is committed to expanding Chinese market and network equipment market

The transaction is expected to be completed in the first half of 2010

3Com shares soared 35%, HP increased slightly

According to Reuters reports, Hewlett-Packard (Hewlett-Packard) pay 3.1 billion U.S. dollars to finalize acquisition of network equipment maker 3Com , get into the telecommunications equipment market, increased the competition with the Cisco (Cisco Systems).

IBM and Oracle and other technology giants increasingly involved in the recent invasion and occupation of each other's markets, trying to create a cover computers, network and storage equipment, a one-stop shop. this year Cisco  began to enter the computer server (server) market, but Hewlett-Packard occupies an important seat in this area.

Hewlett-Packard said it would pay 7.90 U.S. dollars per share acquisition of 3Com, the price is higher than 39%. 3Com's valuation of the transaction is about 2.7 billion U.S. dollars, not excluding net cash.

Robert W. Baird & Co analyst Jayson Noland said Cisco and HP's competition will become increasingly fierce. In The future the two companies can both provide everything you need.

After HP's acquisition of 3Com, it will be with Cisco network equipment in the wider area of direct competition, including routers and switches. Analysts said that 3Com's market in China is not small, you can enable HP to expand sales in China, while China is fastest growing markets in the world.

3Com are also want to brand into the large enterprise market by H3C, trying to fight Cisco and other giants.

HP's ProCurve division Marius Haas, senior vice president, dealing with the 3Com , HP can compete with Cisco better.

He said: "We hope to create a network among the strong companies. He also added that the final pre-trade identification and 3Com, Hewlett-Packard verify the market all the technology in the past six months."

3Com is also the target in the past; In 2008, Bain Capital Partners and China's Huawei Technologies attempt to acquire 3Com by 2.2 billion, but failed to gain U.S. government approval.

All right reserved!