$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.