HP signs definitive acquisition agreement for 3Com for USD2.7bn

Technology company HP (NYSE:HPQ) declared on Wednesday the signing of a definitive acquisition agreement at USD7.90 per share in cash or an enterprise value of approximately USD2.7bn for 3Com Corporation (NASDAQ:COMS), a provider of networking switching, routing and security solutions.

HP and 3Com's boards of directors approved the terms of the transaction.

The company's acquisition of 3Com will expand its Ethernet switching offerings as well as routing solutions and add the intrusion prevention systems, TippingPoint portfolio to strengthen HP's position in China, put together a research and development team to accelerate innovations to HP networking solutions.

Under the terms of the merger agreement, 3Com stockholders will receive USD7.90 for each share of its common stock held at the closing of the merger and the acquisition is subject to customary closing conditions, including regulatory approvals.

The transaction is expected to close in the first half of calendar 2010 and HP expects it will be slightly dilutive to fiscal 2010 non-GAAP earnings.

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