3Com Corp. on Friday announced that it has signed a definitive merger agreement to be acquired by affiliates of Bain Capital Partners, LLC, a leading global private investment firm, for approximately $2.2 billion in cash. The  move will transfer assets of the communication giant to the Hong Kong-based investment group, whereas Huawei Technologies, a communication giant from China, will acquire a stake in 3Com.

Under the terms of the agreement, shareholders will receive $5.30 in cash for each share of 3Com common stock they hold. This represents a premium of approximately 44% over 3Com’s closing price of $3.68 on September 27, 2007. As part of the transaction, affiliates of Huawei Technologies will acquire a minority interest in the company and become a commercial and strategic partner of 3Com.

“As business becomes ever more global, companies need to enhance their technology infrastructure to compete more effectively in the broader economy. 3Com has a strong competitive position, and we believe there are significant opportunities to grow by acquiring customers and introducing new products. We look forward to working with the management team and the company's strategic partners to seize the worldwide growth opportunity that exists for 3Com's communications networking solutions,” said Jonathan Zhu, a Bain Capital Managing Director, based in Hong Kong.

The transaction is expected to be completed by the first quarter of calendar year 2008, subject to receipt of 3Com shareholder approval, customary regulatory approvals and other customary closing conditions. Citigroup Global Markets Asia Limited, UBS AG, The Hongkong and Shanghai Banking Corporation Limited, ABN AMRO Bank N.V. and Bank of China (Hong Kong) Limited have provided firm financing commitments to Bain Capital Partners.

“The 3Com Board of Directors and senior management team have thoroughly reviewed our strategic alternatives and have determined that the agreement with Bain Capital provides the best value for 3Com shareholders. 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,” said Edgar Masri, 3Com president and chief executive.