HP/3Com - When networks and servers combine

Announced in November 2009, the purchase of 3Com by Hewlett-Packard (HP) was finalised in April 2010, underlining HP’s efforts to remain one of the largest computer and server manufacturers in the world, while also building a complete server/network equipment solution for their clients so that they can counter emerging competition in this market, notably from Cisco.

There was a time when it was feared that the Chinese equipment manufacturer Huawei Technologies would purchase 3Com, before the American government blocked the sale in 2008 on fears that this crucial networking company would fall into powerful foreign hands. 3Com brings with it a high level of knowledge in network infrastructure which HP was previously missing, providing the company the possibility of directly answering the demands of a new market.

At the beginning of 2009, the networking specialist Cisco announced that they intended on entering the servers market to be able to offer end to end solutions combining the power of servers and network streams associated with virtualisation.

A highly strategic acquisition
HP, having decided that they would get onto the power of virtualisation and cloud computing, didn’t yet master the intermediate steps represented by networking equipment. The acquisition of 3Com allows them to have full control over all of the pieces required to be able to provide complete solutions to their clients.

The purchase made for $7.90 for each 3Com share, was the equivalent of 2.7 billion dollars. The deal was finalised in April 2010, and we didn’t have to wait long before seeing HP’s first releases calling upon 3Com’s knowledge.


Taking control of the company also provided them with access to the affiliated H3C, while also significantly reinforcing their presence in markets showing strong growth like China and Latin America.

Once again, this was a strong reason for the purchase, allowing them to withstand international competition while also benefitting from young, dynamic markets.