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01 Oct 2007
Networking vendor 3Com has reached a definitive agreement to sell up to private equity firm Bain Capital and former joint-venture partner Huawei for $2.2bn.
Under the terms of the deal, which is set to close by the first quarter of 2008, Huawei will take a minority stake in 3Com. In March, 3Com acquired the 49 per cent holding it did not already own in its joint-venture with Huawei, H3C.
The announcement came as another of the networking industry’s top guns, Avaya, confirmed it had received shareholder clearance for its acquisition by private equity firms Silver Lake Partners and TPG. Avaya said the deal, which was first announced in June (CRN, 5 June), is expected to close by the end of October.
Meanwhile, 3Com has urged shareholders to accept the takeover, arguing it would allow it to increase its strength in the networking market.
Edgar Masri, chief executive at 3Com, said: “The 3Com board of directors and senior management team have thoroughly reviewed our strategic alternatives and have determined that the agreement with Bain Capital provides the best value for 3Com shareholders.
“We believe that this agreement better positions 3Com to establish itself as a global networking leader, which will benefit our employees, our customers and our partners.”
Jonathan Zhu, a managing director at Hong Kong-based Bain Capital, said: “3Com has a strong competitive position, and we believe there are significant opportunities to grow by acquiring customers and introducing new products.
“We look forward to working with the management team and the company's strategic partners to seize the worldwide growth opportunity that exists for 3Com's communications networking solutions.”
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