HP Set To Acquire 3Com In A $2.7 Billion DealNovember 12th, 2009 - 7:29 pm ICT by GD
By Ranjan Bhaduri
Nov. 12, (THAINDIAN NEWS) Leading computer manufacturer Hewlett Packard, commonly known as HP, is going to acquire networking device maker 3Com Technologies. The whopping $2.7 billion deal is aimed at strengthening HP’s stake in data center operations and enterprise networking segment. HP also aims to grab a share of the networking market hitherto dominated by the likes of Cisco. The acquisition has got the approval of the management of both the companies. The transaction is likely to be wrapped up by 2010.
HP said in a statement that this deal will certainly widen its range of ProCurve networking products. It will start using the routers and Ethernet switches of 3Com. The fact that 3Com has a good market position in Asia including China will go in HP’s favor. The CEO of 3Com, Bob Mao expressed his opinion that its technology will make a difference for HP in the coming days. According to him, 3Com products offer the users the best value for money and save power too. 3com’s products are used by a lot of banks, companies, ISP, retailers and business users all over the world.
The deal will prove to be beneficial for 3Com as well. While the company is known for making high quality networking products, it has suffered from channel issues for a long time. This problem is likely to be resolved with the strong distribution channel of HP. The partners of both the companies also stand to gain hugely from this deal. HP hopes to fulfill the networking needs of its customers to the hilt after this acquisition is completed.
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