Computer giant Hewlett-Packard (HP) has announced it is to acquire network system manufacturer 3Com in a deal worth US$2.7 billion.
HP said the deal would “transform the networking industry and underscore HP’s next-generation data centre strategy built on the convergence of servers, storage, networking, management, facilities and services”.
The acquisition of 3Com will also dramatically expand HP’s Ethernet switching offerings, and significantly strengthen HP’s position in China, the company added.
“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,” said Dave Donatelli, executive vice-president and general manager, Enterprise Servers and Networking, HP.
“By acquiring 3Com, we are accelerating the execution of our converged infrastructure strategy and bringing disruptive change to the networking industry.
“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 centre,” Donatelli said.
“Our extensive product line and innovative technology, together with HP’s breadth and scale, will expand our global opportunity,” said Bob Mao, chief executive officer, 3Com.
HP expects the transaction to close in the first half of 2010.
HP Q4 beats analysts’ expectations
HP also today reported preliminary fourth-quarter profits that beat analysts’ expectations, despite a fall in revenue.
The company’s diluted earnings per share (EPS) in the fourth quarter was US$0.99, compared with US$0.84 reported for the same period a year previous.
However, revenues during the quarter suffered an 8pc fall from the prior-year period to US$30.8 billion.
HP revised upwards both its full-year EPS and revenue forecast.
“Solid execution drove exceptional performance for HP this quarter, fuelled by significant growth in China,” said Mark Hurd, chairman and chief executive officer, HP.
"We are delivering on our strategy and are well positioned going into 2010."
Photo: Mark Hurd, chairman and chief executive officer, HP
Article courtesy of businessandleadership.com