Home / News / HP fronts $2.7bn in 3Com takeover
Huge acquisition hot on the heels of the Cisco deals

HP fronts $2.7bn in 3Com takeover

Hewlett-Packard is paying $2.7 billion to acquire internet network and security firm 3Com.

The move indicates HP’s intent to broaden its business beyond hardware and become a one-stop shop for customers.

The move is also a telling indicator of the market confidence that’s pouring back into the tech sector. The HP deal comes fast after a rapid succession of major takeover deals in the business.

Logitech announced yesterday it was to buy video-telecoms firm LifeSize for $405 million. Two weeks prior, networking giant Cisco made an extraordinary double-salvo buyout of both wireless networking firm Starent and Norwegian videoconferencing group Tandberg. Both Cisco’s buyouts will cost it as much as $6 billion.

Hewlett-Packard’s 3Com takeover – at $2.7 billion – still stands out as one of the biggest moves in the sector.

The firm says the acquisition "will transform the networking industry and underscore HP’s next-generation data centre strategy built on the convergence of servers, storage, networking, management, facilities and services".

Much of 3Com’s strength is its popularity in the ever-expanding China and Asian territory.

"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," said Dave Donatelli, executive vice president and general manager of HP’s enterprise servers and networking group.

The acquisition bid was made at a 53 per cent premium to 3Com’s share price. The deal needs regulatory approval.

Check Also

Data breach expert joins Keller Lenkner UK

Kingsley Hayes, data breach and cybercrime specialist, has joined Keller Lenkner UK as head of …