SAN JOSE, Calif. — Hewlett-Packard said Wednesday that it is buying the 3Com networking company for $2.7 billion, the latest move by the world’s No. 1 personal computer maker to expand into areas more profitable than PCs.
HP also raised its 2010 guidance and reported preliminary quarterly earnings that topped Wall Street’s forecasts. The company didn’t provide specific reasons for its better outlook, other than a statement from chief executive Mark Hurd that “significant growth in China” and “solid execution” helped HP in the quarter.
HP’s stock slipped 35 cents to $49.65 while 3Com’s shares leaped $1.96, or 34 percent, to $7.65 in extended trading after the announcements.
3Com is a former Silicon Valley high-flyer whose fortunes faded after the dot-com meltdown a decade ago. Its proposed sale to a private equity firm and a Chinese partner fell apart last year over national security concerns.
HP’s acquisition of 3Com is at once a shot at networking leader Cisco Systems and a reminder of how a flurry of recent maneuvers by technology heavyweights is straining old relationships.
HP has been trying to muscle into Cisco’s turf with its ProCurve line of networking gear. While growing, it is a small part of HP’s business, accounting for less than 1 percent of HP’s $83.6 billion in revenue in the nine months ended July 31.
