HP to acquire 3Com for US$2.7bn

HP will purchase 3Com, a leading provider of networking switching, routing and security solutions, at a price of US$7.9 per share in cash or an enterprise value of around US$2.7bn. The terms of the transaction have been approved by the HP and 3Com boards of directors. Under the terms of the merger agreement, 3Com stockholders will receive US$7.9 for each share of 3Com common stock that they hold at the closing of the merger. The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of 3Com’s stockholders. The transaction is expected to close in the first half of calendar 2010. HP anticipates that the transaction will be slightly dilutive to fiscal 2010 non-GAAP earnings.