HP expands its Ethernet switching offering with the purchase of 3Com

 One of the US largest computer-makers Hewlett-Packard is acquiring the networking equipment company 3Com for about $2.7 billion, in a deal that is expected to improve H.P.’s business in China and expand its network gear business.

Hewlett-Packard is to pay $7.90 in cash for each share of 3Com, representing a 39% over 3Com’s closing price of $5.62 a share on Wednesday.

According to the official statement of both companies the deal was approved by the boards of the two companies. The acquisition is expected to be closed in the first half of 2010.

Hewlett-Packard and 3Com state the purchase will enable HP to reinforce its data center strategy that is built on the convergence of servers, storage, networking, management, facilities and services. Besides, the deal is expected to expand Hewlett-Packard’s Ethernet switching offerings and strengthen the company’s position in China.