Shares of 3Com Corp soared more than 35 percent in extended trading on Wednesday after Hewlett-Packard Co agreed to acquire the networking solutions provider for $2.7 billion, while HP shares slipped 0.7 percent to $49.65.

HP and 3Com Corporation made joint announcement on Wednesday that HP will purchase 3Com, a leading provider of networking switching, routing and security solutions, at a price of $7.90 per share in cash or an enterprise value of approximately $2.7 billion.

3Com, which has a large coverage in China, is striving to enter the large enterprise market outside China with its H3C brand, trying to take on giants like Cisco.

The move will help HP compete against Cisco Systems Inc and expand into China, according to industry analyst.

The acquisition has been approved by the HP and 3Com boards of directors, but the transaction is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of 3Com's stockholders. The transaction is expected to close in the first half of calendar 2010.

HP on the same day reported preliminary fourth quarter profit and revenue, and raised its outlook for fiscal 2010.