Vowing to transform the networking industry, HP announced its intention to acquire 3Com, a leading provider of networking switching, routing and security solutions, for approximately $2.7 billion in cash ($7.90 per share). The deal would make HP the No.2 enterprise networking vendor worldwide with a growing share of the Chinese market.
HP said the acquisition accelerates its next-generation data center strategy focused on the convergence of servers, storage, networking, management, facilities and services. In particular, the acquisition of 3Com will dramatically expand HP’s Ethernet switching offerings, add routing solutions and significantly strengthen the company’s position in China via the H3C offerings. In addition, the combination will add a team of 2,400 engineers in China.
“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, Enterprise Servers and Networking, HP. “By acquiring 3Com, we are accelerating the execution of our Converged Infrastructure strategy and bringing disruptive change to the networking industry. By combining HP ProCurve offerings with 3Com’s extensive set of solutions, we will enable customers to build a next-generation network infrastructure that supports customer needs from the edge of the network to the heart of the data center.”
“Our extensive product line and innovative technology together with HP’s breadth and scale will expand our global opportunity,” said Bob Mao, chief executive officer, 3Com.
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- In May 2009, 3Com outlined plans to return to the global enterprise networking market by leveraging its broad portfolio of H3C edge-to-data-center solutions. As a first step, the company is introduced two new switching platforms, the H3C S12500 for end-of-rack in data centers, and a “flex-chassis” switching platform, the H3C S5800, for wiring closets, smaller network cores and top-of-rack in data centers. The products are manageable by a new platform.
- In June, 3Com marked the 30 year anniversary since Ethernet-inventor Bob Metcalfe incorporated the company.
