HP Acquires 3Com For $2.7 Billion

HP is acquiring network infrastructure manufacturer 3Com for $2.7 billion. 3Com provides networking, switching, routing and security components.

HP says the acquisition will further its data center strategy “built on the convergence of servers, storage, networking, management, facilities and services.” The acquisition of 3Com also help to expand HP’s Ethernet switching offerings, add routing solutions and significantly strengthen the company’s position in China thanks to 3Com’s strong presence in China. The transaction is expected to close in the first half of 2010.

It seems that HP struck back with a huge acquisition of its own after rival Cisco went on a shopping spree recently. Cisco responded to HP’s acquisition with this statement:

While Cisco has a healthy respect for all of our competitors, acquisitions in our industry only validate the fact that networking is becoming the platform for all forms of communications and IT. As the leader in the networking market, Cisco is very confident in our business strategy, commitment to product innovation and ability to provide strategic business value to our customers in a highly competitive marketplace.