HP Drops 2.7 Billion To Buy 3Com

HP Drops 2.7 Billion To Buy 3Com

hp logoHP and 3Com have come to an agreement at $7.90 per share for 3Com, which has been approved by both boards of directors. The markets are closed; 3Com closed at $5.69 today.

HP is a global leader in a number of technology areas, including personal computing hardware, software, services, and now with the acquisition of 3Com, enterprise level networking hardware.

3Com is a giant, with revenue of over $1 billion annually, and is profitable overall as an enterprise. It is dwarfed in size by HP in terms of revenue and profits.

HP had this to say on the matter: “This combination will transform the networking industry and underscore HP’s next-generation data center strategy built on the convergence of servers, storage, networking, management, facilities and services. The resulting business outcome will help customers simplify the network, deploy a unique and innovative edge-to-core network fabric for the enterprise and improve IT service delivery capabilities, all delivered with best-in-class price-performance.”

Both companies were up on the day, and in after hours trading, 3Com was up 34.8%, HP was up 1.13%.

This sale combines two of the larger technology companies in existence, bringing pressure on a  number of related companies, such as Cisco.

Read next: Twitter pulls new retweet feature until bugs are fixed.

Shh. Here's some distraction

Comments