3Com said that it had reached a deal to be acquired by private equity firm Bain Capital and former partner Huawei Technology for US$2.2 billion in cash. Huawei would gain a minority stake in the 3Com as part of the transaction.
Under the terms of the agreement, shareholders will receive $5.30 in cash for each share of 3Com common stock they hold. This represents a premium of about 44% over 3Com’s closing price of $3.68 on September 27, 2007. The transaction is expected to be completed by the first quarter of calendar year 2008.