Hewlett-Packard to Take Over 3Com For $2.7B
November 12, 2009 6:24 AM
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The 3Com acquisition will allow HP to try and compete with Cisco
Hewlett-Packard closed the business day on Wednesday by announcing a $2.7 billion acquisition of networking maker 3Com, as the company tries to increase its presence in China and other key foreign markets.
The deal has been approved by the board of directors of both HP and 3Com, with the deal expected to finalize in early 2010.
"By acquiring 3Com, we are accelerating the execution of our Converged Infrastructure strategy and bringing disruptive change to the networking industry," HP Enterprise Servers and Networking GM Dave Donatelli said in a statement. "By combining HP ProCurve offerings with 3Com's extensive set of solutions, we will enable customers to build a next-generation network infrastructure that supports customer needs from the edge of the network to the heart of the data center."
Ideally, HP will be able to
utilize 3Com's Ethernet business in China
and other developing markets, analysts point out. Immediately following the official close of the acquisition, expect a worldwide push of 3Com products under the HP brand name.
The company has attempted to wedge its way into Cisco's marketshare, but has been relatively unsuccessful so far -- HP and Cisco have worked together on a number of projects, but continue to butt heads, setting an interesting landscape in networking hardware and software.
It's a continuing trend to see companies try and diversify their product portfolios by either acquiring new technologies or launching new research and development labs. In markets typically controlled by Cisco, some customers, according to analysts, have long sought another major company move into the industry to help offer new products.
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RE: Presence in consumer maket
11/13/2009 12:35:40 AM
Neither HP nor 3Com make core or WAN routers, though. And the WAN routing market is moving strongly toward IADs, which neither 3Com nor HP has any experience in. HP already has a strong switching portfolio. I'm not sure what they intend by this. It seems very redundant.
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