HP (HPQ) Acquires 3Com (COMS) for $7.90 Per Share, or $2.7 Billion

November 11, 2009 4:19 PM EST

HP (NYSE: HPQ) announced plans to acquire 3Com Corporation (NASDAQ: COMS) for $7.90 per share in cash or an enterprise value of approximately $2.7 billion.

The terms of the transaction have been approved by the HP and 3Com boards of directors.

HP anticipates that the transaction will be slightly dilutive to fiscal 2010 non-GAAP earnings.

The transaction is expected to close in the first half of calendar 2010.

HP said the 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.

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