Hewlett-Packard, 3Com Tie Up in $2.7 Billion Deal

3Com's shares shot up $1.98, or 34.8%, to $7.67 in extended trading as investors responded to the deal. Hewlett-Packard's stock, however, headed in the opposite direction, dipping 16 cents, or 0.32%, to reach $49.83.

Hewlett-Packard will now combine its own ProCurve networking portfolio with 3Com's offerings, significantly boosting its reach in corporate data centers. With many firms rethinking their IT strategies as the economy emerges from the recession, H-P is clearly laying the foundations for the future. Specifically, the deal expands the tech bellwether's Ethernet switch and routing products, as well as its presence in China.