Private equity firm Bain Capital Partners agreed to buy 3Com, the...
Private equity firm Bain Capital Partners agreed to buy 3Com, the acquired company said Friday. Bain, which this year agreed to acquire Clear Channel, is picking up 3Com for $2.2 billion cash. 3Com’s former joint venture partner Huawei Technology…
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will get an unspecified minority interest and become a commercial and strategic partner of the company. In a teleconference, 3Com CEO Edgar Masri said going private would give the company greater flexibility by taking away the “intense quarterly focus” of publicly held businesses. 3Com considered “a number” of offers, but sold to Bain because they have a history of working together and Bain has a “track record” of success with invested companies, Masri said. 3Com’s board approved the deal, set to close Q1 2008, and plans to recommend that shareholders do the same, 3Com said. 3Com also needs “customary” regulatory approvals. Until the deal is completed, it will be “business as usual” at 3Com, Masri said. In 2003, 3Com and Huawei formed Huawei-3Com technology, a 3Com-controlled joint venture that sold Ethernet and IP switches to enterprise buyers. 3Com paid $882 million in November 2006 to buy Huawei’s 49 percent stake.