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Bain Capital to acquire 3Com

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CIOL Bureau
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BANGALORE, INDIA: Networking company 3Com has agreed to its acquisition by private investment firm Brain Capital Partners, LLC for an approximate value of $2.2 billion in an all cash deal.

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Additionally, Huawei Technologies will acquire a minority stake and become a commercial and strategic partner of 3Com, according to a statement by the company.

Shareholders will get $5.30 in cash for each share of 3Com common stock. The transaction would be complete by the first quarter of calendar year 2008.

“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,” said Edgar Masri, 3Com president and chief executive officer.

“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,” said said Jonathan Zhu, a Bain Capital managing director, based in Hong Kong.

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