The definitive acquisition agreement was signed last Friday valued at $2.2 billion (A$2.5 billion)
“As business becomes ever more global, companies need to enhance their technology infrastructure to compete more effectively in the broader economy,” said a Hong Kong based managing director Jonathan Zhu.
“3Com has a strong competitive position, and we believe there are significant opportunities to grow by acquiring customers and introducing new products,” he said.
Mr Zhu said the company had identified worldwide growth opportunity for 3Com's communications networking solutions in conjunction with the company’s strategic partners.
As part of the transaction, affiliates of Huawei Technologies will acquire a minority interest in the company and become a commercial and strategic partner of 3Com.
Analysts say the closer ties between 3Com and Huawei should prove profitable for both companies.
3Com’s China-based Huawei-3Com business unit contributed more than half of the company’s sales last year, and analysts say Huawei can leverage the 3Com relationship outside of China to better compete with its US rival Cisco.
The transaction is expected to be completed by the first quarter of calendar year 2008, subject to receipt of 3Com shareholder approval.
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