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(WEB HOST INDUSTRY REVIEW) -- IT firm HP (www.hp.com) announced on Thursday it will purchase networking switching, routing and security solutions provider 3Com (www.3com.com) for approximately $2.7 billion.
The terms of the transaction have been approved by the HP and 3Com boards of directors.
The acquisition is part of HP's next-generation data center strategy, which is built on the convergence of servers, storage, networking, management, facilities and services.
The deal comes at a time when data center solution providers are forming new partnerships to keep up with the ultra competitive market.
Last week, the company introduced the HP Converged Infrastructure Architecture and a set of related services and partner offerings that create a one-stop data center as a counter response to the recently announced Cisco-EMC-VMware alliance.
The addition of 3Com's switching, routing and security solutions will help HP to help customers simplify the network, deploy an edge-to-core network fabric for the enterprise and improve IT service delivery capabilities.
"Companies are looking for ways to break free from the business limitations imposed by a networking paradigm that has been dominated by a single vendor," says Dave Donatelli, executive vice president and general manager, enterprise servers and networking at HP. "By acquiring 3Com, we are accelerating the execution of our Converged Infrastructure strategy and bringing disruptive change to the networking industry. By combining HP ProCurve offerings with 3Com's extensive set of solutions, we will enable customers to build a next-generation network infrastructure that supports customer needs from the edge of the network to the heart of the data center."
The buy expands HP's Ethernet switching offerings, adds routing solutions and significantly strengthens the company's position in China via the H3C offerings.
3Com's large research and development team in China will drive the acceleration of innovations to HP's networking solutions.
HP will also attain best-of-breed network security capabilities through 3Com's TippingPoint portfolio.
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