If you have the money, a recession is the time to buy all sorts of things. Prices on homes are lower, cars are often cheaper, and stock prices on businesses tend to be at lower prices than years with a strong economy. HP is taking advantage of the economy and has announced that it has entered into an agreement to buy networking firm 3Com for $7.90 per share.
That price works out to $2.7 billion and the transaction has been approved by the HP and 3Com board of directors. HP reports that the purchase will help it underscore its next generation data center strategy and allow it to converge server, storage, networking, and more.
HP reports that the purchase will dramatically expand HP's Ethernet switching offerings and add routing solutions while strengthening HPs position in China. 3Com stockholders will receive $7.90 for each share of 3Comm common stock at the closing of the merger. HP says the merger is subject to regulatory approvals and the deal is expected to close in the first half of 2010.