I just finished reading a few blog posts and articles about the 3Com Corporation (NASDAQ: COMS) being acquired by Bain Capital Partners and Huawei Technologies Co. of China in a $2.2 billion deal. I was a bit surprised by this because even though they've been eclipsed by Cisco Systems (NASDAQ: CSCO) when it comes to networking equipment; I didn't think the Marlborough, Mass. based company was ready to sell yet.
Now I know this doesn't mean they're throwing in the towel, but I was startled nonetheless. The full press release can be viewed on their site here and it sounds as if Huawei and 3Com will be working together:
"As part of the transaction, affiliates of Huawei Technologies will acquire a minority interest in the company and become a commercial and strategic partner of 3Com."
3Com and Huawei have a relationship dating back to 2003 when they formed a joint venture called Huawei-3Com Technology, or H-3C. 3Com took control of the venture at the end of 2005 and now they've come full circle.
Is this a good thing for 3Com? Will this make them more competitive on a global scale?
» 3Com Acquisition In Jeopardy? from ITechTips
I posted about the acquisition of 3Com by Bain Capital Partners and Huawei Technologies Co. of China in a $2.2 billion deal last month, but it appears the deal is already getting a bit shaky. An article in The Register reports... [Read More]
Tracked on: October 14, 2007 9:31 PM | Permalink to Trackback