Hewlett Packard to acquire 3Com

PALO ALTO, Calif., Nov. 11 (UPI) -- U.S. technology giant Hewlett-Packard said it reached an agreement with 3Com to acquire the maker of routers, switches and security systems for $2.7 billion.

The deal was announced Wednesday, The New York Times reported.

The boards of both companies have agreed to the acquisition, which values 3Com at $7.90 per share at the time the merger closes.

"Based on our experience and extensive testing of 3Com's products, we are planning to undertake a global roll-out within HP as soon as possible after the completion of the acquisition," said Randy Mott, executive vice president and chief information officer at Hewlett-Packard.

The deal is expected to strengthen Hewlett-Packard's presence in China, the Times said.