3Com to be sold for $2.2B to Bain Capital

MARLBORO, Mass. -- Shareholders will receive $5.30 in cash for each share of 3Com stock, or a premium of about 44% over the stock's $3.68 closing price on Thursday.

Although Bain Capital is the buyer, affiliates of China-based Huawei Technologies will acquire a minority interest in 3Com and become a commercial and strategic partner, 3Com said.

3Com said its board had unanimously approved the deal, and recommended shareholders approve it.

3Com's board and senior managers "have thoroughly reviewed our strategic alternatives and have determined that the agreement with Bain Capital provides the best value for 3Com shareholders," said Edgar Masri, president and chief executive of 3Com. "We believe that this agreement better positions 3Com to establish itself as a global networking leader, which will benefit our employees, our customers and our partners."

The transaction is expected to close in the first quarter of next year, subject to shareholder and regulatory approvals.