3Com To Buy TippingPoint for $340 Million

3Com has signed an agreement to purchase the security company TippingPoint for $340 million.

Under the terms of the agreement, 3Com will pay $47 cash per outstanding share of TippingPoint stock which represents a 13 percent premium over the closing price on Friday December 10, 2004.

The purchase is aimed at strengthening 3Com's secure, converged voice and data networking solutions by adding TippingPoint's network-based Intrusion Prevention Systems (IPS) to its portfolio. TippingPoint's IPS provides application protection, infrastructure protection and performance protection for enterprises, government agencies, service providers and academic institutions.

The acquisition is subject to various standard closing conditions, including regulatory approval and approval by TippingPoint stockholders, and is expected to close in the 3rd quarter of 3Com's fiscal 2005.

TippingPoint will operate as a division of 3Com with TippingPoint CEO, Kip McClanahan, assuming the role of division president, reporting directly to 3Com CEO, Bruce Claflin. TippingPoint is headquartered in Austin, Texas, and employs approximately 125 people."TippingPoint's products, solutions and employees are all world class," 3Com CEO Mr. Claflin said in a statement. "We will provide them access to the 3Com's global resources and infrastructure to expand their ability to deliver best-of-breed security products. The integration of TippingPoint into 3Com enhances our ability to deliver secure, converged networks to the enterprise market."

"Networking and security technologies are merging. As the market embraces the benefits of a converged networking infrastructure, there must be a shift from general purpose to purpose-built security solutions that are tightly integrated, performing at line speed and in real time," added TippingPoint CEO Kip McClanahan.