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Thursday, 12 November 2009 11:12

HP to buy 3Com

Written by Nick Farell

Image

$2.7 billion cheque


Maker
of printer ink which is more valuable than gold, HP has bought networking-gear maker 3Com for $2.7 billion in cash.

The move helps HP bulk up its product line amid a broader push by the few remaining technology giants to turn themselves into one-stop technology shops. By buying 3Com, which has not been doing so well lately it makes HP a direct rival of Cisco. Cisco has moved into servers, previously HP and Dell's turf.  HP had a pop at  Cisco with investments in networking, but this one is a biggie.

David Donatelli, H-P's vice president in charge of the corporate-computer division, said 3Com has a better set of networking products for large corporate clients than H-P currently sells and a market share of more than 30 per cent in the China networking market. HP's cunning plan is to sell "complete systems" made of chips, computers, storage devices and software.

Nick Farell

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