A busy afternoon on a typically quiet Veteran's Day with Hewlett-Packard announcing after the bell that it would acquire 3Com for $2.7B or $7.90 a share.
Perhaps the bigger news, was HP raising it's guidance and pre-announcing its Q4 results. HP announced preliminary Q4 EPS of $1.14 per share on a non-GAAP basis and revenues of $30.8B. The company also raised its 2010 EPS forecast by $0.05 to the range of $3.65-$3.75 and also its revenue guidance to between $118B and $119B.Overall, the 3Com transaction is HP's fourth largest acquisition and one that will transform the networking industry, making it the second largest networking company behind Cisco Systems.
In an exclusive interview on Closing Bell, HP's Executive Vice President of Enterprise Business Ann Livermore provided more detail behind the deal.