The Wall Street Journal reported that 3COM will be acquired by Bain Capital and Huawei Technologies. TMC’s Greg Galitzine has a call into 3COM for comments but what we know so far is the transaction is at $5+/share meaning more than $2 billion. Huawei and 3COM have been business partners in the past and my impression was this relationship didn’t result in the sales progress either company hoped for.
Interestingly Huawei hasn’t made a huge dent in the US as of yet and this is surprising. Then again, I recently read an article discussing the idea that Chinese automakers will be slower to enter the US market in a serious way because their home market shows so much promise. I guess even the largest companies can only focus on so many things at once.
Perhaps this is the same situation for Huawei. The company is in the US and now with the 3COM acquisition they have a US partner to help them get to our channels of distribution. I look forward to seeing more formal announcements from Huawei/3COM in the upcoming days and weeks.
Also see coverage at Forbes.