Communications equipment maker 3Com Corp has struck a deal to be bought by China's Huawei Technologies and private equity firm Bain Capital for more than $2 billion, The Wall Street Journal reported on Friday.
The offer values 3Com at more than $5 per share, the Journal said, citing a person familiar with the matter.
3Com shares rose 32.6 percent to $4.88 in premarket trade. The shares are halted on the Nasdaq pending news.
In March, Marlborough, Massachusetts-based 3Com bought Huawei Technologies' 49 percent stake in H3C, a joint venture between the companies, for $882 million. That deal gave 3Com full ownership of H3C.
Bain Capital is one of world's largest private equity firms. Huawei is China's largest communications equipment maker.
A deal would be a positive sign for private equity firms, whose deal-making activity has been sharply curtailed by the credit crunch.
By teaming up with a corporate partner, Bain will be less reliant on banks for money to fund the deal.
A representative of 3Com was not immediately available to comment on the newspaper report. A Bain spokesman did not immediately return a call seeking comment.
(Reporting by Michael Flaherty and Sinead Carew)