HP to Acquire 3Com
Maura Lockwood, Cabot Headline News
November 12, 2009
Hewlett-Packard (HPQ) has agreed to buy 3Com (COMS) for $2.7 billion in
cash, the latest move by HP to increase its product line and turn
itself into a one-stop shop for corporate customers, the Wall Street
Journal reported.
The largest tech company by revenue, Hewlett-Packard also pre announced
fiscal fourth quarter results of an 11% jump in operating expenses and
an 8% decline in revenue. But the company also raised its revenue
forecast for the new fiscal year, according to the Journal, a sign that
the tech industry is leaving the recession behind.
With the 3Com purchase, Hewlett-Packard is aiming to jump start its
growth. The move will also put HP more squarely on Cisco’s turf, the
Journal reported.
The 3Com deal is the latest step in tech industry consolidation by many
of the largest companies including Cisco (CSCO), Dell (DELL) and Oracle
(ORCL) reported the Journal.
HP, CSCO and ORCL are among the 250 highest rated value stocks covered each month in Cabot Benjamin Graham Value Letter.
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