Thursday, September 27, 2007

3Com to Be Acquired by Bain Capital Partners for $2.2 Billion

Bain Capital Partners, a leading global private investment firm, agreed to acquire 3Com for approximately $2.2 billion in cash. shareholders will receive $5.30 in cash for each share of 3Com common stock, representing a premium of approximately 44% over 3Com's closing price of $3.68 on September 27, 2007

As part of the deal, affiliates of Huawei Technologies will acquire a minority interest in the company and become a commercial and strategic partner of 3Com.

3Com also includes H3C Technologies Co. (H3C), a China-based provider of network infrastructure products.

  • In June 2007, 3Com announced plans for an initial public offering (IPO) of common stock of its wholly owned subsidiary TippingPoint. 3Com expects to file a registration statement related to the IPO by the end of the calendar year.

    TippingPoint provides network-based intrusion prevention systems (IPS) and Digital Vaccine attack filter services for enterprises, government agencies, service providers and academic institutions.

  • In March 2007, 3Com Corporation closed its acquisition of Huawei Technologies' 49% stake in H3C for $882 million and 3Com now owns 100% of the China-based company. To fund the transaction and related fees and expenses, 3Com used approximately $470 million of cash from its balance sheet and approximately $430 million from a senior secured bank loan at its H3C segment.