Published in News

HP to buy 3Com

by on12 November 2009


$2.7 billion cheque

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.
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