Bain and Chinese Company to Acquire 3Com

[kurth]

September 29, 2007
Bain and Chinese Company to Acquire 3Com
By LAURIE J. FLYNN and KEITH BRADSHER

3Com, an unprofitable computer networking company, said yesterday that it had agreed to be acquired by Bain Capital Partners for $2.2 billion in cash in an arrangement that also gives a Chinese company, Huawei Technologies, a minority stake in the company.

The deal marks the end of an era for a storied Silicon Valley company that has stumbled in recent years in the face of more nimble competitors such as Cisco and Nortel.

It also provides yet another test case for Washington lawmakers wary of high-technology deals with Chinese companies that they think could compromise American security.

Edgar Masri, 3Com’s president and chief executive, said the buyout would help to make 3Com more competitive. “Going private will give us more flexibility,” he said. “We will be able to focus on our long-term strategic objectives.”

http://www.nytimes.com/2007/09/29/technology/29com.html