US based personal computer maker Hewlett-Packard announced Wednesday it is acquiring 3Com.
This acquisition deal is worth $ 2.7 billion, or $7.90 a share.
3Com is set to bring a wide-ranging portfolio of network switching, routing and security solutions to the computer and laptop maker.
Analysts predict the deal would help HP expand their business operations in China where 3Com already has an extensive presence.
Based on our experience and extensive testing of 3Com’s products, we are planning to undertake a global rollout within H.P. as soon as possible after the completion of the acquisition, said Randy Mott, Hewlett-Packard’s executive vice president and chief information officer, in a statement.
By acquiring 3Com, we are accelerating the execution of our converged infrastructure strategy and bringing disruptive change to the networking industry, HP executive vice president Dave Donatelli said in a statement.
Hewlett-Packard and 3com confirmed that the deal had been approved by both their board of directors.
The transaction is expected to close in the first half of 2010.
Separately, Hewlett-Packard reported a profit, excluding some items, of $1.14 a share in the fiscal fourth quarter. That topped the average estimate of $1.11 in a Bloomberg survey.