HP Buying 3Com for $2.7 billion
Posted in: cisco, HP, Today's ChiliHP yesterday announced plans to purchase 3Com in a move that’s being seen as a direct challenge to Cisco Systems. HP will pay $7.90 per share for a total of around $2. billion. Both HP and 3Com’s board of directors have already approved the deal.
“We wanted to create a powerhouse in the networking industry,” HP senior vice president Marius Haas said of the multi-billion dollar deal. Asked to comment on the deal, Cisco managed to find a way to pat itself on the back, stating, “While Cisco has a healthy respect for all of our competitors, acquisitions in our industry only validate the fact that networking is becoming the platform for all forms of communications and IT.”
3Com made $1.3 billion last year, with more than half of its profits coming from China.
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