Hewlett-Packard buys 3Com for $2.7 billion in a major challenge to Cisco

Filed under: Company News , Technology , Investing , Hewlett-Packard , IBM , Cisco Systems Inc. Computer giant Hewlett-Packard ( HPQ ) announced a $2.7 billion deal to buy 3Com ( COMS ), the huge networking company, late Wednesday. It’s HP’s fourth-largest acquisition ever and instantly makes the Silicon Valley pioneer the second-largest networking company in the world after Cisco Systems ( CSCO ). The deal, which represents a 44% premium on 3Com stock, sent 3Com shares soaring some 35% to $7.65, 25 cents short of HP’s offer, in after-hours trading. HP’s move is a bold attack on Cisco, the networking Goliath. “Companies are looking for ways to break free from the business limitations imposed by a networking paradigm that has been dominated by a single vendor,” Dave Donatelli, HP’s executive vice president and general manager for enterprise servers and networking, said in a statement. Continue reading Hewlett-Packard buys 3Com for $2.7 billion in a major challenge to Cisco Hewlett-Packard buys 3Com for $2.7 billion in a major challenge to Cisco originally appeared on DailyFinance on Wed, 11 Nov 2009 17:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Hewlett-Packard buys 3Com for $2.7 billion in a major challenge to Cisco

Tagged with: 2-7-billion • 3com • a-bold-attack • cisco • cisco systems • ciscosystems • entry • hewlett-packard • investing • major-challenge • networking • new york state • server • technology

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